Ripple’s native token, XRP, has seen a significant price increase, rising by over 5% and reaching a critical resistance level of around $0.5730. However, this price action has formed a double-top pattern, a technical signal often indicating a potential short-term trend reversal. This bearish sentiment is further supported by a sharp drop in active addresses, with data from Santiment showing a 43.24% decrease to 15.798K from the previous day’s high of 22.629 K.
XRP/USD 4-Hour Chart (Source: TradingView)
In addition, XRP’s OI-weighted fund rate shows more traders betting on a price decrease, reinforcing the bearish outlook. Despite this, Ripple continues to challenge the $0.5730 resistance level, leaving the possibility of a breakout still on the table.
Will the $0.5730 Resistance Hold?
Market analysts predict that the $0.5730 barrier will hold in the short term as bearish pressure persists. A failure to break this resistance could see XRP retesting its recent low around the 23.6% Fibonacci level at $0.5560. If this level is breached, XRP could drop further to yesterday’s low of $0.5464, where buyers are expected to step in to prevent further declines.
XRP Active Addreses (Source: Santiment)
On the other hand, a shift in momentum could see XRP breaking above the $0.5730 resistance, confirming an uptrend. This could push the token towards the next hurdle at $0.5850, where sellers may look to capitalize on profits. A break above this level could propel XRP to challenge the $0.5939 high, last seen on August 24.
Ripple’s Price Action
As of press time, XRP traded at $0.5616, reflecting a 0.86% increase in the last 24 hours. This modest gain has pushed the token’s market cap to $31.59 billion, securing its position as the 7th largest cryptocurrency by market capitalization. The recent price rise may be linked to a recent announcement by Ripple CEO Brad Garlinghouse, who revealed that Ripple is developing a new programmability feature for the XRP Ledger (XRPL), which will introduce smart contracts, NFTs, and decentralized exchanges (DEXs) to the network.
