XRP price stumbled at the $0.61 resistance on Thursday July 25 amid bearish headwinds from Ethereum ETFs, market data analysis shows how Bull traders are battling to extend the rally toward the $0.65 territory.
XRP’s 17% Rally Halts amid Ethereum ETF’s $133M Outflows
The crypto market has been in a steady uptrend since July 5. Amid several bullish catalysts, the Ethereum ETFs launch and Joe Biden bowing out for the US 2024 Elections race have triggered both highlight potential positive shifts within the crypto regulatory landscape.
Expectedly, as one of the most litigated crypto entities during the Biden administration, Ripple (XRP) has attracted considerable demand. Crypto-native investors anticipate that Biden’s exit increases the likelihood of victory for Donald Trump, a candidate perceived to have a more friendly stance on crypto.
In effect, XRP price has raced into a 17% rally since Biden’s announcement, outperforming the BTC, ETH and every other crypto assets in the top 10 valuation rankings.
The chart above shows how XRP price rose 17.69%, from $0.54 on July 19, to reach a weekly time frame peak of $0.63 on July 23. This remarkable price performance spark speculations that XRP price could reclaim the $0.65 resistance territory within the weekly timeframe.
However, recent bearish events surrounding Ethereum ETFs, threatens to spill over towards the rest of the altcoin market, putting XRP’s price rally at risk.
Firstly, Ethereum ETFs officially launched on Tuesday, July 23, after nearly 2 months of regulatory delays.
Many crypto traders opted to sell-into the market euphoria, to locking some of the unrealized profits they had racked up since the bull run began three weeks ago, after the dovish NFP and CPI data released on July 5.
On the first day of trading, Ethereum ETFs attracted a healthy $1 billion trading volume and $107 million in inflows. This helped to nullify the bearish headwinds from the sell-the-news frenzy on July 23. But things took a negative turn on July 24.
However, the market sentiment flipped on July 24 amid major outflows from Ethereum ETFs. On Wednesday, Ethereum ETFs experienced over $130 million net outflows.
The highest outflows on the day came from Grayscale Ethereum Trust, which rose to the tune of $32 million, making it the only Ethereum ETF to record a net-negative on both trading days so far. On the other hand, Fidelity’s FETH led the inflows, accumulating just over $74.46 million.
The bearish afterschocks spread across to the altcoin markets. XRP price has now dipped 6% from its weekly peak, as it fell below $0.60 at the time of writing on July 25.
It now remains to be seen if the XRP bulls will hold firm to their unrealized 17% gains, or succumb to the bearish pressure building up.
XRP Price Forecast: Bulls to Defend $0.59 Support Fiercely
XRP is currently trading at $0.6185, experiencing slight upward momentum with a 0.03% increase over the last 24 hours. The price action has shown a significant consolidation around the $0.60 mark, which is a critical support level for the bulls. The Fibonacci retracement levels indicate that $0.59 is a key support level that the bulls will need to defend to prevent further downside.
The chart shows a recent dip of 6.01% over one day, reflecting a brief period of selling pressure. However, the presence of a notable 17.69% gain over a five-day span suggests that there is underlying bullish sentiment in the market.
If the price falls below the $0.59 support, it could potentially test lower support levels around $0.55 and $0.50, as indicated by the Fibonacci retracement zones.
On the upside, key resistance levels are located at $0.62 and $0.65. Breaking above these levels could pave the way for further gains, with the next significant resistance zone around $0.70. The Accumulation/Distribution Line (ADL) is currently at 1,517.40, indicating moderate buying pressure, which supports the possibility of maintaining the current price level or pushing higher.
The market shows mixed signals, leaning towards a neutral stance but with a slight bullish bias due to recent price gains and moderate buying pressure.
In summary, XRP’s immediate support at $0.59 is crucial for the bulls to defend. A breach below this level could lead to further downside, while maintaining above it and breaking past $0.62 and $0.65 resistance levels could indicate a continuation of the bullish trend.
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.
