Ripple (XRP) Price Analysis: Will XRP Breach $0.60 or Reverse Below $0.50 amid Bitcoin Rally?

XRP Price Analysis:

XRP price opened trading at $0.55 on Tuesday, Oct 22, having stagnated within a narrow 2% range after the US SEC filed a last minute appeal against Ripple on Oct 16. Technical indicators signal weakening buying pressure from whale investors, a move that could potentially trigger intense volatility in the coming days.

Will XRP breakout above $0.60 or reverse below $0.50?

XRP Price Stagnates at $0.55 as Bitcoin Approaches 20% Rally

After a fairly-positive performance in the first half of October, XRP price has fallen behind the broader crypto market uptrend over the past week. Positive macroeconomic indicators haves spurred fresh capital inflows towards the cryptocurrency markets.

But while the likes of Bitcoin (BTC), Ethereum (ETH) and Solana (SOL) raced to new monthly timeframe peaks in the last 7-days, XRP has remained rooted below the $0.60 level, fraughted by the cloud of uncertainty surrounding its ongoing appeals battle with the US Securities and Exchange Commission (SEC).

Confirming XRP’s laggard performance, the charts above compares the Ripple-backed coin’s price action against the  global crypto market cap growth (TOTALCap), in October 2024.

Between Oct 3 and Oct 14, XRP price had progressed along with the market surge, as investors piled on capital inflows as positive US NFP and CPI reports hinted more dovish Fed decisions in Q4 2024.

However, after SEC filed a last minute appeal dated Oct 16, XRP price action fell flat, decoupling from the market rally.

Since Oct 14, the crypto market  has surged by another, adding over $75 billion to the global valuation, Meanwhile, during this period XRP price has largely stagnated within the narrow 2% range between $0.53 and $0.57, perching around the $0.54 spot at the time of publication on Oct 22.

Critical Bearish Signals Emerge after 7-day Consolidation

After a week of consolidation, XRP traders are witnessing several bearish signals, suggesting potential short-term downside risks. Investors appear to be diversifying away from XRP, likely drawn by the ongoing rally in co-cyclical altcoins. This shift is underlined by various technical and sentiment indicators.

According to the Crypto Fear and Greed Index (CFGI), XRP sentiment has settled into a neutral zone at 53%, signaling indecision among traders. However, deeper analysis shows that critical short-term trading signals have flipped bearish.

Whale Transactions and Technicals Trending Bearish

Although social sentiment remains positive, particularly in search volume and social media mentions, key technical indicators are pointing toward increased sell-side pressure. Whale transaction metrics, a vital indicator of institutional or large trader activity, have turned very negative.

This is a concerning signal, as low whale participation often indicates declining liquidity and weak market support.

The short-term technical analysis also aligns with this sentiment. While trading volume and order book sizes have increased, the accompanying negative technical signals indicate that sell orders are outpacing buy-side demand.

In conclusion, the combination of high volume of active trades, alongside a rising order book size, and negative whale activity, suggests that retail traders are dominating the XRP markets with high spate of sell-orders.

If sell-side pressure continues, XRP could face further downside pressure in the coming days.

XRP Price Forecast: Bears Eyeing $0.50 Reversal

XRP price is perched above the $0.54 level at the time of writing on Oct 22. But in terms of short-term price action, technical indicators on the XRPUSD daily chart show a bearish outlook.

As depicted above, XRP has been trading in a narrow range for the past three months, with a notable decline in volume. The 200-day moving average (MA) is currently acting as a key support level around $0.542.

If this support fails to hold, the next target for bears is $0.507, which is the bottom of the current range. On the upside, resistance can be found at $0.620, marking a potential breakout zone.