XRP Faces Extreme Fear, Accumulation Indicates Potential Reversal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: Coinmarketcap
- Market Sentiment Plummets: According to Santiment data, XRP's market sentiment has plunged into the extreme fear zone, with a 19% decline from its January 5 peak, currently trading at $1.9097, reflecting investor pessimism.
- Continuous Accumulation: Despite negative sentiment, net inflows of $5.38 million were recorded on January 23, indicating that long-term holders still see value at current price levels, potentially setting the stage for a future reversal.
- Decline in Derivative Market Activity: XRP's derivative market shows reduced trading activity, with open interest falling 2.73% to $3.31 billion and trading volume dropping by 40.31%, suggesting traders are reducing their exposure.
- Bullish Pattern Formation: On the daily chart, XRP has formed a descending wedge pattern, typically associated with bullish reversals, and if the price breaks above the $2.00 resistance, it could rise to the $2.20 to $2.30 range.
Analyst Views on XRP
Wall Street analysts forecast XRP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for XRP is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 21.530
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
