As of May 2024, the XRP price had fallen by approximately 14% based on year-to-date metrics, largely due to the issues surrounding regulatory uncertainty. However, that doesn’t mean that the investors are preparing for a severe bear market and subsequent crypto winter. On the contrary, the most popular Ripple price prediction indicates that a rally could occur at any moment and that traders must be ready for price growth over the rest of the year. This means you need to adjust your trading strategy to make room for the possible volatility and fluctuations.

Price ratio

The XRP/BTC price ratio has been sinking over the past five years, dropping by 88% during this timeframe. A new figure shows that compared to BTC, XRP fell to a 2021 low recently. Some investors have interpreted the charts as signaling the approach of an XRP/BTC bottom, a metric that caused a certain degree of optimism among community members. However, there’s no denying the persistent downtrend that has held the marketplace in its grip since the beginning of the year. At the same time, the BTC/USD pair climbed by over 43%.

Most believe that the most likely reason why XRP is facing difficulties at the moment is as a result of Ripple’s lawsuit with the Securities and Exchange Commission, a situation that is still ongoing. The uncertainty of this legal situation is largely to blame and is an obstacle that would naturally cause investors to remain cautious when trading. This, in turn, results in lower engagement and reduced trading activity overall.

Local bottom

The local bottom is a metric referring to bottom prices given based on a time frame ranging from a couple of days to a few weeks. Some investors actually believe that the subdued price action can make way for a new all-time high later this summer that will exceed the $3 mark. The more optimistic predictions show that the CRP values will climb to $4, or perhaps even exceed it by July. Based on numbers from the coin’s relative strength index, which was positioned at 50, the price is neutral right now.

This is a significant move compared to the April 13th low during which the RSI was 28, indicating oversold conditions. Right now, the coin is far more stable and can be considered to be firmly positioned at the fair value level. The RSI value is a critical momentum indicator that can measure whether an asset is overbought or oversold based on the magnitude and scope of the most recent price fluctuations. However, some analysts and investors remain reticent and believe a further drop is possible. The most pessimistic estimates show that the values could drop to $0.31, a critical support level between 2022 and 2023.

Price movements

On May 21st, the bulls attempted to get XRP to the overhead resistance level of $0.57, but the candlesticks show that the bears remain the predominant force during the rallies. The clearest sign that the bulls are attempting to get to the support level is if the price manages to rebound off the moving averages. This is one of the market movements that could help the rally over $0.57 become a more likely possibility. Moreover, this could also provide the XRP/USDT with a boost and allow it to surge toward the $0.67 level. But if the price goes below the 20-day EMA, it will be a clear sign that it is headed lower and that the bulls have given up, at least for the time being.

Only a few days earlier, the XRP price had succeeded in climbing above the 20-day EMA. This occurred on May 17th, but the bulls were ultimately unable to sustain the higher levels, indicating that the bears are selling on relief rallies. This event represents a respite from the movements of the broader market sell-off. It is a temporary, upward movement during which the assets grow despite the challenging market conditions. However, if a further break occurs that brings the level to $0.46, it can open the doors to bulls starting to buy at a solid rate.

There’s also the fact that the XRP price has witnessed volatile moves very close to the averages, reinforcing the idea that the bulls and the bears are engaged in a serious battle. The bears will naturally keep attempting to get the price below the moving averages and the general support line, while the bulls need to clear the hurdle at $0.57 to reclaim their spots. And while many expect the arrival of a rally that will get the prices to $0.67, it will likely be met with pretty strong resistance at the next level, around $0.74.

Altcoins

Despite these somewhat worrying stats, most investors are convinced that there’s reason for optimism. Most altcoins are expected to record strong performance in the upcoming months, an expected move given the fact that the past year has been somewhat slow in terms of price growth and engagement rates. However, researchers also predict that the altcoins will bottom during early summer before they start picking up speed later on. To record a bull run, Bitcoin would have to break out from its current range first.

This prediction is based on historical data and chart patterns that show that many altcoins tend to reach their local price bottom in June. So far, they are following the plan perfectly, as they reached a previous bottom back in February, then sold off around the time of the BTC halving again. The altcoins market cap dealt with some troubles in April, falling by more than 20% to settle at $265 billion. However, the overall figures show that the capitalization is still over 24% based on year-to-date and more than 167% during the past twelve months.

The crypto marketplace remains as changeable as ever, and investors trying to make sense of it are likely to find the process challenging. Historical data, charts, and other important metrics are crucial when it comes to deciding on a strategy since they’ll provide you with accurate information regarding the direction the trading environment is most likely to take.