Ripple Price Prediction – Here’s Why I’m Still Bullish On XRP

Ripple (XRP) price has disappointed the investors once again as it is back at its pre court victory levels. The price surged 98% after Ripple’s court win against the SEC. However, all the gains have been lost after the recent sell-off in cryptocurrencies.

XRP coin failed to break above its $0.92 resistance level in August. Consequently, the price fell by 48% and is now fondling with the 200-day moving average. On Monday, Bitcoin price once again fell below $26,000, causing a sell-off in altcoins. Ripple (XRP) also fell 0.61% and was trading at $0.501 till press time.

Why Is XRP Price Tanking?

To be honest, I am not surprised at the recent sell-off in XRP. Many retail investors bought the coin after the court declared it not a security. While it was one of the biggest wins for the whole crypto industry, a 98% price increase within 48 hrs was still not sustainable. Such news-induced pumps often fade in cryptocurrencies. That’s why the smart money usually buys before the news.

Another reason why many analysts are not bullish on Ripple price is its massive circulating supply. According to Coingecko, around 53 billion XRP coins are in circulation. Such a huge supply makes significant gains very difficult as it is already at a market cap of $26.5 billion.

Ripple (XRP) Retains BTC Gains

The following XRP/BTC chart shows the strength of XRP against the most valuable cryptocurrency in the world. Despite a major pullback, the XRP/BTC pair has been 25% up since the court ruling date. This means that Ripple is still showing some strength against Bitcoin.

The pair has also bounced off the 200-day moving average, which is a major line in the sand for many traders.             A downward trendline is also acting as a diagonal resistance. As soon as the pair breaks out of this trendline, I expect another bullish leg in XRP price.

Ripple Price Prediction

A look at the following XRP/USD chart reveals that the pair is consolidating around 200 MA on the daily chart. A breakdown below this key moving average will be very bearish. I expect the price to retest the upward trendline around $0.43 in this case. Despite the ongoing correction, the market structure on the daily timeframe remains bullish.

My Ripple price prediction will flip bearish if the price closes a day below $0.41. This will break the bullish market structure. However, in case of a strong bounce from here, $0.67 will be the key level to watch. A daily closure above this level may result in another retest of the $0.92 resistance.