XRP Price Tumbles 34% in August Following Global Market Chaos– Is Ripple Poised for a Comeback?
XRP price comes crashing down but maintained above it July 5 low. Positive signs could mean XRP is turning bullish?
Key Takeaways
- An XRP rebound signals potential buyer interest.
- Ripple-related ETP investment products are attracting consecutive weekly inflows.
- The XRP is close to being oversold, with hints of possible reversal.
On July 31, Ripple (XRP) failed to break above its long-standing descending structure. This led to a downward spiral, with the price plunging from a high of $0.657 to $0.43 by Aug. 5, marking a significant 34% decrease.
However, it wasn’t long before XRP got back up on its feet, instantly recovering 9%. Could this mean that the buyers have stepped in?
Ripple ETPs See Inflow
Digital asset investment products experienced significant outflows, totaling $528 million, for the first time in four weeks due to fears of a potential US recession, geopolitical concerns, and broader market liquidations. Bitcoin saw $400 million in outflows after five weeks of inflows. Meanwhile, short-Bitcoin products saw $1.8 million, the first significant inflows since June.
On the other hand, Ethereum saw $146 million in outflows, with net outflows reaching $430 million since its launch. Despite this, the newly launched ETFs had positive inflows of $430 million, offset by $603 million in outflows from the Grayscale trust.
However, according to CoinShares data , XRP-focused investment products were an exception, attracting $400,000 in new capital. This marks consecutive weeks of inflows for XRP, indicating growing investor interest. Since the beginning of the year, XRP ETPs have garnered $21 million in investments.
XRP Price Analysis
On July 5, Ripple’s price dropped to $0.38, its lowest point since March. By July 31, it had surged 72% to $0.652 before making a sharp downturn.
This was another interaction with the descending channel’s resistance from mid-July 2023. The July 5 low could have marked the end of a complex WXYXZ correction, possibly the subsequent rise being the first sub-wave of a new bullish phase.
The recent 34% decrease pushed XRP to its 0.786 Fibonacci retracement level. However, the daily candle remains above the horizontal support at $0.48. The RSI is close to oversold territory at 35%, but the MACD still indicates strong bearish momentum.
The MACD shows a positive trend on the hourly chart, and the RSI is recovering from the oversold zone. The price has spiked upward, showing a 12% increase since today’s low, which adds to the potential for a reversal.
The next descending move will strengthen the confirmation. If XRP forms a higher low, it will likely signal the start of a new uptrend. This could lead to a significant recovery for XRP, but only time will tell if it will result in a major uptrend.
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