A key technical indicator suggests that Ripple coin may witness a pullback ahead.
XRP price has surged more than 10% today as the bulls come to the rescue after the crypto market witnessed a heavy bloodbath last week. Billions of dollars were wiped out of the market after US President Donald Trump threatened hefty tariffs on China.
The macroeconomic woes have caused a broader financial secd tor jitter, let alone the crypto market. As a result, BTC price fell from its all-time high of $126,198 to below $109k, which reflected a bearish sentiment among traders.
Meanwhile, the altcoins also followed suit, with XRP price falling to as low as $1.5 from its local high of $3. However, as the investors once again shifted their focus towards the digital assets space, market pundits have shared bullish forecasts for the asset.
For context, an analyst said that the Ripple Coin price may hit $6 or even higher, citing the historical trends. On the other hand, many have cited the “Uptober” sentiment to help in a strong rally in the broader crypto market.
So, let’s take a quick tour of the recent performance of the token and see what experts are anticipating for the future trajectory of the coin.
Ripple coin price has added more than 10% today, during writing, and soared past the brief $2.6 support amid a broader crypto market recovery. Notably, XRP price has been the talk of the crypto town since last week, especially as the broader crypto market faced massive liquidations.
However, the recent recovery has allayed some concerns of the investors, especially as the investors are once again shifting focus towards the digital assets space. During writing, the global crypto market cap was up nearly 3% to $3.87 trillion.
Simultaneously, BTC price has reclaimed the $115k mark with ETH price adding more than 7% after its recent losses. Notably, the derivatives data also reflects the bullish sentiment among market participants, which might help drive the prices further upward.
According to CoinGlass data, XRP Futures Open Interest soared around 6% to $4.3 billion.
However, the Relative Strength Index (RSI) of the coin showed that it is nearing an “overbought” region, which might trigger a short-term pressure on the asset.
Amid the ongoing rally in XRP price, a renowned technical analyst has taken the optimism to a new height. In a recent X post, market expert CRYPTOWZRD has shared an XRP price prediction, hinting at a potential rally to $6 and beyond.
The analyst noted that the current capitulation event mirrors the same movement of 2017. However, after six weeks of the 2017 capitulation event, the crypto has exploded to new highs.
So, if the cycle repeats, the analyst said that the Ripple coin price may soar to as high as $6.4 in the near future. This also comes in tandem with the current market trend and soaring optimism over the upcoming developments in the Ripple market.
For context, the current pullback has allowed many to buy the dip and enter the market at a discounted price.
In addition, the anticipation over XRP ETF approval has further bolstered market sentiment, which might help in a continuing rally ahead.
However, as said earlier, the RSI data hints at a likely pullback ahead.
In addition, the investors should also explore the potential impact of the ongoing geopolitical and macroeconomic concerns, which might trigger massive volatility in the market.
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