XRP Price Struggles in August: Will Bulls Prevail?

XRP Price: Will $0.66 Be the Next Target?

XRP Price – Ripple’s XRP has experienced a challenging month in August, consistently failing to break out of its defined trading range. Since August 9, the altcoin has encountered strong resistance at the $0.61 level while finding support at $0.58. This narrow range has kept XRP in a state of uncertainty, with both bulls and bears battling for control.

XRP Bulls Maintain Momentum Above Key Moving Averages

Despite the ongoing struggle around the $0.60 mark, XRP bulls have managed to prevent significant price drops by maintaining the altcoin’s position above critical moving averages. As of now, XRP trades comfortably above its 20-day exponential moving average (EMA) and 50-day simple moving average (SMA), signaling continued bullish momentum.

The 20-day EMA, a short-term moving average, reflects the average closing price over the past 20 days and reacts quickly to price changes. In contrast, the 50-day SMA, a longer-term indicator, captures the average closing price over the last 50 days. Trading above these levels generally indicates that an asset is in a bullish phase, with potential for further gains. For XRP, remaining above these key moving averages suggests that bullish sentiment continues to outweigh bearish pressure, despite the sideways movement in price.

Positive Elder-Ray Index Reinforces Bullish Sentiment

XRP’s bullish outlook is further supported by the Elder-Ray Index, a technical indicator that measures the difference between the bulls’ and bears’ power in the market. As of the latest data, XRP’s Elder-Ray Index stands at 0.010, firmly in positive territory. This positive trend has been consistent since August 18, which is nine days after XRP began its sideways trading pattern. A positive Elder-Ray Index typically indicates that buying pressure is stronger than selling pressure, reinforcing the potential for a bullish breakout.

XRP Price Prediction: Potential Rally Toward $0.66

The bullish sentiment is not just limited to spot trading; it extends to the derivatives market as well. XRP’s futures traders have remained optimistic, with futures open interest increasing by 4% since the altcoin’s price started moving sideways. At press time, XRP’s futures open interest stands at $722 million, indicating strong trader interest in the asset.

Despite the range-bound movement, XRP futures traders have consistently favored long positions. Although there have been occasional spikes in short demand, the overall trend has seen more long positions being opened than shorts. This is further reflected in the positive funding rate, which suggests that traders are willing to pay a premium to hold long positions, anticipating a price increase.

If bullish momentum continues to build, XRP could break through the $0.61 resistance level, potentially rallying toward $0.66. However, if bearish pressure intensifies and the token’s price falls below the $0.58 support level, XRP could slip under its 20-day EMA and 50-day SMA, with a potential drop to $0.50.

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