XRP price retreated on Saturday as Friday’s rebound faded amid fears of a dead-cat bounce. Ripple token was trading at $1.40, down from the Friday high of $1.5485. It remains well above this week’s low of $1.1180.
Ripple Token Losses Momentum Despite Rising XRP ETF Inflows
XRP price rebound on Friday coincided with a broader crypto market rally, which pushed Bitcoin and most altcoins higher after a major crash. The rally happened as investors bought the dip during bargain hunting.
This rebound also coincided with a substantial decline in the VIX Index and a recovery in U.S. equities, with the Dow Jones Index crossing the important resistance level at $50,000 for the first time.
Traders also purchased XRP ETFs, with inflows rising by more than $15 million on Friday. The funds added more than $39 million in assets this week, reversing the losses incurred in the previous two weeks. Spot Bitcoin ETFs, on the other hand, shed over $689 million in assets this week, while Ethereum shed $149 million.
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XRP has some solid fundamentals, including the upcoming implementation of permissioned DEX tools on the network. Its permissioned DEX features will have broad use cases, including stablecoin and fiat swaps, contractor payouts, cross-border business-to-business payments, and corporate treasuries.
XRP will play a role in this product, as it will serve as an auto-bridge asset for FX and remittance transactions. It will also introduce native on-ledger credit markets through the Lending Protocol. This role will increase the XRP burn rate.
Still, the main risk is that Friday’s rally was a dead-cat bounce, a pattern in which an asset in a freefall rebounds briefly and then resumes the downtrend.
XRP Price Prediction: Technical Analysis
The daily timeframe chart shows that the XRP price has been in a strong freefall in the past few months, moving from a high of $3.65 to a low of $1.1161 this week. It then rebounded on Friday, reaching a high of $1.5483.
The coin remains below all moving averages, and the Supertrend indicator is red, indicating that bears are currently in control. It also remains below the key resistance level at $1.8077, its lowest level in February, April, and October last year.
Therefore, the most likely scenario is where the coin resumes the downtrend and moves to the year-to-date low of $1.10. It may also drop to the key support level at $1.00. On the other hand, a move above the resistance level at $1.80 with invalidate the bearish outlook.
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