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Ripple’s price experienced a setback of 8% and reached a weekly low of $0.53 on February 22nd. However, despite this decline, traders have shown a strong intention to hold onto their XRP tokens in anticipation of a rebound.
Earlier in February, Ripple’s price surged to a peak of $0.58, benefiting from the positive market sentiment surrounding layer-1 cryptocurrencies. While the price has dipped below $0.55 this week, investors have refrained from selling off their holdings on a large scale.
XRP, along with other top-ranked layer-1 coins, played a prominent role in the recent crypto market rally. Increased demand, positive sentiment, and a substantial $120 million investment from crypto whales contributed to this rally. Although XRP’s 7.4% increase was not as significant as that of rivals like Avalanche, Solana, and Ethereum, it was enough to push XRP to a new monthly peak of $0.58 on February 15th.
However, after attempting to break the $0.58 territory on February 19th, XRP’s price experienced an 8% pullback, reaching a local low of $0.53 on February 22nd. Despite this decline, on-chain data indicates that most XRP holders remain optimistic about the future price.
According to the Santiment chart, XRP trading volume reached $1.1 billion during the peak of the rally on February 15th. As prices began to decline, XRP traders decreased their trading activity. The chart shows that trading volume dropped by $760 million compared to the previous week, with only $357.9 million worth of trades recorded in the last 24 hours as of February 22nd.
The significant decline in trading volume compared to the pace of price decline is seen as a positive sign by savvy investors. It suggests that there is strong confidence in the market, indicating that the current pullback will likely transition into a rebound phase.
Furthermore, the overall growth of the altcoin market cap this week, coupled with the historic peaks of BTC and ETH, further supports the optimistic outlook for an upcoming XRP price rebound.
Considering the current market conditions, it is likely that XRP will be able to avoid a further decline below $0.50. However, if a rebound occurs, the bulls may face initial resistance at the previous peak of around $0.58, as indicated by the upper Bollinger band.
In the event of a bullish scenario, where the price breaks above the resistance, XRP could potentially reach a major breakout towards $0.60.
On the other hand, if the bears manage to push the price below the critical $0.50 area, it could invalidate the optimistic price forecast. The lower Bollinger band indicates that there is significant support at $0.49 in the short term.
Overall, the current market trends suggest that XRP is in a favorable position for a potential rebound, but the resistance at $0.58 and the support at $0.50 will play crucial roles in determining the future price movements.
