XRP Price Prediction: Oversold and Ready to Bounce

Ripple's (XRP) price fell from $0.63 to $0.52 earlier this week due to another regulatory battle with the US SEC. However, traders in the

The US SEC has filed an appeal against XRP’s non-security status in court. This news caused XRP’s price to drop from $0.63 to $0.52 earlier this week.

However, traders in the derivatives market seem to believe that this is a temporary setback rather than a long-term barrier. According to Coinglass, XRP’s Long/Short Ratio had risen to 2.10. This indicates that a majority of traders anticipate a rise in XRP’s value once the discussions surrounding the SEC appeal subside.

Furthermore, the liquidation heatmap, which identifies high areas of liquidity, seems to agree with this bias. In short, the liquidation heatmap shows price levels where high-scale liquidations might occur.

It also helps traders to find the best liquidity positions. Specifically, if the color changes from purple to yellow, then there is a high concentration of liquidity at that point, and the price might move in that direction. For XRP, these regions are between $0.62 and $0.63. As such, the altcoin’s value might soon experience a bounce toward those levels.

A look at the Bollinger Bands (BB) on the daily chart shows heightened volatility around XRP as the bands expanded. But beyond highlighting the level of volatility, the BB also shows if a token is overbought or oversold.

When the upper band of the BB touches the price, it is overbought. On the other hand, if the lower band taps the price, it is oversold. As seen below, the lower band of the indicator has hit XRP’s price at $0.52.

This indicates that slight buying pressure could be significant in triggering a rebound. Additionally, the altcoin’s price is at the same position as the 38.2% Fibonacci retracement level. This ratio, also known as the support floor, could also be vital in helping XRP rebound.

Thus, there is a high chance that XRP’s price will beat the $0.58 resistance. If that happens, the altcoin’s price might jump to $0.62. However, if the SEC appeal advances with Ripple on the back foot, this prediction could be invalidated. In that case, XRP’s price might decrease to $0.48.

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