NAIROBI (CoinChapter.com) — Ripple (XRP) continues to struggle with breaking above the 78.6% Fibonacci retracement level at $0.65, a barrier that has held strong for over six months. Despite repeated attempts, the altcoin has yet to achieve a sustained breakout, keeping it in a cautious trading zone.
Mixed Market Signals Could Delay Breakout
According to Santiment data, the Market Value to Realized Value (MVRV) Long/Short Difference for XRP is currently at 3.1%, indicating long-term holders (LTHs) are still in profit. Historically, LTHs tend to hold on to their assets, waiting for higher profits, which could stabilize the market by reducing selling pressure. Moreover, short-term traders reduce profits, which brings bearish indications and lock XRP from gaining in the short term.
This profit-taking activity, coupled with a spike in the Realized Profit indicator, suggests that while there is a degree of bullishness from long-term investors, the overall market remains volatile.
Bets on XRP futures grew to over $1 billion over the weekend, a level last seen in March and June last year, according to Coinglass data. Binance and Bybit account for almost half of the futures positions, while spot trading volumes more than doubled last week, reaching $2.5 billion on Sunday.
XRP Price Holds Steady Above Critical Support
At the time of writing, XRP is $0.62, slightly above 61.8% Fib retracement at $0.59. This level has given some sort of support during the recent volatile prices. Nonetheless, overcoming $0.65 is critical to continue the upward movement. Consequently, one can predict that it is the broader market trends, Bitcoin performance, and the general crypto sentiment, that will dictate whether XRP can reclaim the $1 level or retest consolidation.
The Bollinger Bands on the daily chart show that XRP is trading near the upper band, suggesting that the price is at a relatively high level compared to recent price action.
Looking ahead to Q4 2024, XRP’s potential to rise hinges on overcoming the $0.65 resistance. Failure to do so could lead to further consolidation below this key level, delaying a bullish reversal for the altcoin.
Ripple (XRP) remains in a delicate position as it balances between long-term optimism and short-term profit-taking. The key $0.65 resistance has kept the cryptocurrency subdued for months, and its ability to break past this level in Q4 2024 will determine whether it can regain upward momentum. Until then, traders remain cautious, awaiting clear signals from broader market trends.
Ripple’s expansion in Dubai could provide additional confidence for long-term investors, further strengthening the token’s position.
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