Important XRP signal points to price recovery: will the price go to $3?

The XRP price has been under pressure for weeks. Yet analysts and investors are now seeing signals that could point to a significant recovery. Fear dominates, but that may be exactly what is needed for a surprising rise towards $3.

Fear prevails among investors

The mood among XRP investors is downright gloomy. Negative messages and doubts about the future of the currency dominate social media. Analysis company Santiment sees that sentiment has again entered the ‘fear zone’.

Historically speaking, that is often a good sign. If sentiment becomes extremely negative and most private investors drop out, a price bottom often follows. In previous cases, this led to a period of accumulation, followed by sharp price increases.

XRP price stabilizes around $1.90

In recent days, XRP has been moving sideways after a prolonged decline. At the time of writing, the price is $1.90. This means that the currency has fallen approximately one and a half percent on a daily basis and approximately half a percent lower on a weekly basis.

Technically the situation is still fragile. XRP is trading below the 50-day average of $2.15 and the 200-day average of $2.54. That means the downward momentum is still dominant.

Yet there is room for recovery. The RSI is at 41, which indicates a neutral zone. Volatility is high, around five percent, and that increases the chance of sudden movements. In combination with the negative sentiment, this could be the catalyst for a new increase.

Can XRP return to $3?

The first challenge for XRP is to convincingly break the $2 barrier. If that succeeds, the psychological limit of 3 dollars comes into view. In the past, similar consolidation phases often preceded long-term increases.

Still, XRP is dependent on broader market sentiment. If major coins such as Bitcoin (BTC) and Ethereum (ETH) rise, it increases the chance that XRP will also move along with it. For now, the situation remains uncertain, but the current climate is reminiscent of previous moments when the price rose unexpectedly.