Despite the positive catalysts, XRP remains stuck in the consolidation phase. It is currently very difficult to predict its further movement. Temujin Louie, CEO of Wanchain, spoke with Beincrypto about the impact of these external catalysts, but leaned towards the idea that they would not be enough to start new bull rallies.
“Although SEC has left its exam for several years against Ripple Labs, it has not caused an immediate increase for XRP. In fact, because this development does not directly improve usefulness or does not stimulate adoption.
Media of threshing and current discussions on the ETF XRP also have an impact on volatility. Investors expect the course to increase due to the very likely consent of the new crypto ETF.
“Speculation around the ETF XRP did not create the same enthusiasm as ETF BTC or ETH earlier. The enthusiasm for crypto ETF decreases with each new approval. In fact, because the subsequent trigger and which will follow will actually be in the endless list,” the expert said.
XRP ready to repeat your story
Network user and profit/loss indicator (NUPL) shows that altcoin is currently saturated. This suggests that, of course, there has been little progress in terms of movement. From now on, the token needs strong market signals to set out a clear direction. Historically XRP experienced a similar consolidation phase.
In 2017, the room consolidated for nine months before a solid boom, which saw a sharp increase in the course. However, after exceeding key levels, XRP entered the consolidation period followed by a strong correction. The same scheme could now be reproduced because XRP is facing a period of four months consolidation. This could tell us potential correction in the near future.
The XRP also followed at a time when the traces of Bitcoins, but Hank Huang, CEO of Kronos Research, proposed a different direction for this time.
“The XRP Does Not Fully Follow The Ascent Fueled by the Bitcoin ETF, OR Its Own Independent Path. The Recent OutGoing Ethereum Flows Observed Recently, Underline An Inclination of the Market to Bitcoin. Than Disperse on All Altcoins, Leaving XRP in Difficulty to Attract the Institutional Momentum Necessary to Get Out of Its Current Slump, ”detailed Huang.
The Vallers position indicator, which is governed by the behavior of long -term holders, shows that the LTHS (long -term holders) accumulated XRP during this consolidation phase. This accumulation suggests that LTH is convinced of token development and bet on raising courses.
Their continuous beliefs helped to support XRPs despite the ruling uncertainty of the market. This accumulation could be a sign that if market conditions improve, active assets permanently increase its value. In fact, because these types of holders in the short term do not focus on small profits.
This accumulation of LTHS acts as a stabilization factor. In fact, because they are not sellers and prevent the course from falling more.
Increasing ready for failure?
At the time of writing, XRP is negotiated for $ 2.20. He has not yet managed to exceed his resistance to $ 2.56. This resistance has proved to be an important barrier in the last four months, limiting any main bull for Altcoin. Until the XRP is able to exceed this level, it will probably remain trapped in its current price range.
With mixed signals from the market, XRP could face many challenges to gain momentum. If market conditions do not improve in the second quarter, Altcoin may experience a decline to $ 2.02 or lower.
In order to reduce the prospects for reduction, the XRP must exceed and transform their resistance of $ 2.56 to support. This would open up the way to increase the course and shift asset above $ 2.95 and $ 3.00. This would also bring XRP to its historical summit (ATH) $ 3.40.
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