XRP price is currently trading 32% above the range low at a price of $0.505. Ripple price has been doing this for almost two weeks, indicating that it is coiling up for a big move.
Considering the bullish setup on Bitcoin BTC price and how it is looking to rally to $40,000 or $42,451, investors can expect Ripple XRP price to follow suit.
Assuming such a thing occurs, the bulls need to slice through the immediate resistance level barriers at $0.707 and $0.791. Doing so will open up the path toward the 50% Fibonacci retracement level at a price of $0.902.
Beyond this area lies the high probability reversal zone extending from a price of $0.998 to $1.133, comprising the 62%, 70.5%, and 79% Fibonacci retracement levels.
This barrier has pushed Ripple XRP price down twice over the past 50 days. Therefore, the ongoing consolidation will likely catapult the remittance token by 65% to tag $1.065 and $1.133 in a highly bullish case.
Supporting this bullish impulsive move is the 365-day Market Value to Realized Value model, which is currently moving above the zero-line from the opportunity zone. This fundamental index is used to measure the average profit/loss of investors who purchased Ripple XRP over the past year.
The 365-day MVRV dipped from 133% on May 18 to -11% on June 21. The price downswing suggests that short-term traders booked profit. The negative value represents an opportunity for long-term investors to accumulate.
The last time Ripple’s MVRV dipped into negative territory was on February 1, when the XRP price was hovering around $0.379 level. Roughly 12 days after this dip, the market value of the remittance token surged 67% to tag $0.62.
Therefore, if something similar were to happen, the XRP price will likely tag $1.
On the flip side, if market participants continue to book profits, leading to a breakdown of the $0.65 support floor, Ripple XRP will likely retest the range low at price $0.505, which coincides with the June 2019 top.
A breakdown of $0.505 will invalidate the bullish thesis and kick-start a 12% descent to the next support level barrier at $0.452.
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