Ripple's native token, XRP, is currently trading at its lowest level in the past week. Right now, it’s priced at $0.53, which is a 3% drop over the last 24 hours.
Even with this decline, an analysis from BeInCrypto suggests that this downturn may be temporary. There’s a chance we could see a rebound soon.
Let’s look at the selling pressure. It seems to be easing up. XRP’s Chaikin Money Flow (CMF) has shown an upward trend recently. Currently, it sits at -0.10 and is trying to cross above the zero line. This indicator helps us understand buying and selling pressure over time.
When the CMF is negative but trending upward, it means there’s still some selling going on. However, the intensity of that selling is decreasing. This suggests that the bears are losing strength, and bullish interest is starting to build.
Additionally, XRP’s funding rate is at 0.01%. This reflects a bullish sentiment among traders, even though the price has dipped. The funding rate is a periodic fee that helps keep the price of futures contracts aligned with the underlying asset's spot price. A positive funding rate during a price drop indicates that most traders are still optimistic, hoping for a recovery.
Currently, XRP is holding just above a key support level of $0.52. If bullish sentiment picks up, we could see renewed demand for the altcoin, possibly leading to a price rebound.
If that happens, XRP might aim to break through resistance at $0.65. A successful breakthrough could push the token toward its seven-month high of $0.74.
On the flip side, if the downward trend continues, bulls may struggle to defend support at $0.52. In that case, XRP's price could drop to $0.38, which would undermine the bullish outlook.