3 Reasons To Buy XRP Now: Crypto Analyst Shares Bullish Forecast
06 Agosto 2024 - 1:30PM
NEWSBTC
Crypto analyst Doctor Magic (@Doctor_Magic_) has outlined three
reasons for investors to consider buying XRP now. In a series of
posts on the X, Doctor Magic detailed the dynamics and data points
positioning XRP as a potentially lucrative investment in the
current state of the market. #1 Relative Strength Of XRP The crypto
analyst highlights the XRP price relative to Bitcoin (BTC) and its
resilience in the broader market. “XRP’s strength against BTC and
across the board is notable and should not be ignored at this
point. When markets turn up again (soon) the pump on XRP will be
violent!” This analysis is based on a chart that plots the market
cap dominance of as a ratio against BTC and the entire crypto
market on a weekly timeframe. The dominance percentage is a
critical metric, serving as an indicator of market capitalization
relative to BTC, and thus reflects relative investment flows and
market preferences. From 2016 to 2021, XRP’s dominance displayed a
significant downward trend, suggesting a period during which market
preference leaned heavily towards Bitcoin. However, beginning in
2022, this trend leveled off, indicating a potential stabilization
or bottoming relative to Bitcoin. This phase suggests that XRP may
have found a floor in terms of its market cap dominance, setting
the stage for a possible reversal. Related Reading: XRP Ledger Sees
Sharp Decline In Major Metric That Threatens To Send XRP Price To
$0.2 A key support level for XRP/BTC is identified at 0.00000750 by
the analyst. This level has been tested multiple times without a
decisive break, establishing it as a critical floor where market
sentiment has consistently supported the price relative to BTC. In
2024, following a bounce off this support area, there was a
noticeable increase in dominance, suggesting growing investor
confidence in its potential for a recovery. In terms of dominance
over the entire crypto market (XRP.D), the metric currently stands
at 1.47%. After touching down in the support zone ranging from
1.02% to 1.05%, XRP.D also experienced an uptick, further
underscoring the renewed market interest and potential bullish
sentiment. #2 Recovery Post-Dump With Stable Open Interest Doctor
Magic also highlights a notable aspect of the market behavior — its
swift recovery from yesterday’s price crash without any increase in
open interest (OI). “XRP has now retraced the whole yesterday dump
with zero OI added. ZERO. And negative funding,” remarked Doctor
Magic. Related Reading: Why XRP Price Won’t Skyrocket After
Ripple-SEC Ruling: Crypto Pundit This recovery pattern is
significant as it implies the rebound was not fueled by a surge in
speculative trading or new positions being opened, but rather by
solid buying interest, likely from investors confident in
fundamentals or long-term potential. #3 Support From Historical
Open Interest Level Finally, the crypto analyst points to the
current levels of Open Interest (OI) for XRP, which aligns with a
historical baseline that has consistently marked significant market
tops and bottoms over the past four years. “OI on XRP at the
baseline [blue line] that has marked every top and every bottom the
last 4 years,” Doctor Magic notes. This observation suggests that
current OI levels are at a critical juncture, indicative of
potential turning points in the market. Historically, when OI
reaches these levels, it has preceded major price movements. At
press time, XRP traded at $0.5030. Featured image created with
DALL.E, chart from TradingView.com
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