After reaching a new yearly low of around $0.5, a prominent analyst expects a turnaround for XRP in the coming weeks.
The price of XRP has struggled since the start of the new year, dropping from $0.62 to a new yearly low of $0.50 over the weekend.
Although the decline aligns with the broader crypto market correction that has followed in the aftermath of spot Bitcoin ETF approvals in the U.S., XRP has been among the biggest hit, losing 16% over the past month.
However, Matthew Dixon, the CEO of the popular crypto ratings platform Evai, expects XRP’s fortunes to get better soon. In a recent post on X, Dixon highlighted that XRP “may fall back a little” before it starts ascending into higher territory.
Using the 1-hour timeframe chart, Dixon suggests that XRP will drop to around $0.5250 before pushing for the region above $0.54. Reaching that new local high could set the pace for XRP to see further gains in the coming days.
It is also noteworthy that the popular Relative Strength Index (RSI) used to forecast a change in price and momentum is in favor of XRP. At the time of writing, the indicator suggests that XRP is oversold at its market value of $0.5264.
Chances of an XRP Price Reversal Increases
Beyond the technical analysis hinting at an XRP bounce, it is noteworthy that a few of the factors behind the cryptocurrency’s slump are already swinging in its favor.
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For instance, the cryptocurrency market appears to be recovering after the post-ETF dump, which sent prices plummeting.
A continued recovery could provide a springboard for XRP to erase its recent losses. Additionally, dumps from large whale addresses appear to have slowed, as evidenced by the recent consolidation in the asset’s price.
These improved conditions could pave the way for XRP to stage a comeback. Notably, a failure to do so puts XRP at the risk of being overtaken by USDC as the fifth largest crypto asset by market capitalization.
The stablecoin currently stands at a $26.1 billion market cap, just $2.4 billion behind XRP in the rankings.
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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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