XRP Could Surge Over 10% Upon Crossing Two Important Levels
Lately, XRP has been facing significant rejections at its overhead resistance levels, including the one it took a week ago. On the daily chart, XRP has shown a modest increase of 3%. However, in the past one week, this altcoin has not made much progress as its price has decreased by 0.4%. This indicates that XRP price is indecisive on longer time frames.
The technical outlook for XRP shows that the market is bearish. The demand for altcoins has been low and accumulation has also been low. However, if XRP manages to move above its overhead resistance, it could trigger a recovery.
Currently, BTC price is hovering below the $30,000 mark, and most altcoins have followed a similar trend. If BTC breaks the $30,000 mark, XRP could attempt an upward move.
At its current levels, the altcoin is at a critical point as an increase in demand could lead to a rally, while a drop in price could result in a loss of up to 16% of its value. Furthermore, the market capitalization of XRP has decreased, indicating an increase in the number of sellers.
XRP Price Analysis: One Day Chart
The altcoin was trading at $0.47 at the time of writing. It is trading below the overhead resistance at $0.48. The above resistance mark is important as it has previously acted as a price boundary.
A break above the $0.48 mark could push XRP to $0.50, which could act as another higher range before the altcoin targets $0.53. A move towards $0.53 would mean a rally of over 10%.
On the flip side, a decline from the current price level would drag XRP to $0.44 and then to $0.40, thus reverting to bearish influence. The volume of altcoins traded in the previous session was in the red, indicating a drop in demand.
technical analysis
The demand for the altcoin failed to recover as it declined below the $0.50 level. The Relative Strength Index (RSI) indicates that selling strength is greater than buying strength, as the RSI is below the halfway line.
Additionally, the altcoin remains below the 20-simple moving average (SMA) line, which shows that sellers are in control and are driving the price momentum in the market. However, if the demand for XRP picks up a bit, it could push the coin above the 20-SMA line. This would indicate a return of bullish strength on the chart.
In line with other indicators, the altcoin is showing sell signals. The moving average convergence divergence (MACD), which indicates price momentum, has formed a red histogram, indicating a sell.
In addition, the Bollinger Bands, which show price volatility and volatility, have opened up. This suggests that the coin price may experience significant volatility over the next few trading sessions.
Featured images from Unsplash, charts from TradingView.com
source: www.newsbtc.com