XRP flashes signs of recovery; where will it go next?

The price of XRP has fallen sharply to levels last touched nearly 70 weeks ago. Currently, the price of XRP has been trading near its immediate support at $0.36.

Bitcoin continues to be in a volatile state as the coin attempts to recover by breaking the $30,000 mark. The coin is back at $29,700 at press time.

Today, most altcoins in the industry continue to widen their losses. At the time of writing, the market’s bearish pull remains strong.

The market has bottomed out in the last 24 hours, which is why a price recovery can still be considered.

The coin’s technical outlook suggests that a relief rally is likely on the charts, but the macro market remains fragile.

It also needs strength from the broader market so that sellers don’t outpace buyers in the market, forcing prices down again.

Price Analysis: XRP Weekly Chart

XRP is at $0.42 on the one-week chart | Source: XRPUSD on TradingView

At the time of writing, XRP is trading at $0.42. The coin is showing signs of recovery as the coin has surged 10% in the past 24 hours. Whether or not XRP will be able to trade above the recent $0.36 support line remains highly uncertain.

A break below could lead the coin to a low of $0.13. With buyers returning, XRP may try to trade above the immediate resistance at $0.56.

XRP also flashed the same highs on the weekly chart, a pattern associated with bullish price action in the market. A breakout of immediate resistance could push XRP to $0.68, and holding above that level helps invalidate the market’s bearish theory.

XRP has seen an increase in volume and the bars are red, indicating bearishness.

technical analysis

Ripple
XRP shows a drop in purchasing power on the four-hour chart | Source: XRPUSD on TradingView

XRP had tried to get the price back but continued selling pressure exhausted the bulls. The same goes for the 20-SMA indicator.

The price of XRP is below the 20-SMA line. This reading indicates that sellers are driving price momentum in the market.

On the RSI, buyers re-entered the market after facing a strong sell-off across the market. XRP is no longer in the oversold territory of the RSI.

After the recovery, however, XRP fell victim to the bears again, with the RSI showing a dip, indicating increased selling pressure.

Related reading | Crypto shorts see a $240 million flush as Bitcoin bounces back above $30,000

Ripple
XRP shows growth in capital inflows on four-hour chart | Source: XRPUSD on TradingView

The technicals for XRP are showing positive price action as the price recovers. However, it is too early to say whether this is the beginning of a shift in price action.

The Moving Average Convergence Divergence experienced a bullish crossover on the four-hours chart. The indicator is flashing a green histogram above the half line, which signifies bullish momentum for the coin.

XRP is also likely to witness price rises north as Chaikin money flows above the zero line. This indicator shows the amount of capital outflows and inflows, and according to the chart above, at the time of writing, capital inflows outnumbered outflows.

Related reading | Bitcoin recovers above $30,000, has a bottom been marked?

Source link