XRP has consolidated between $0.24 and $0.33 over the past week. Altcoins have risen in the past 24 hours. XRP recorded demand, causing the coin to witness a recovery on its charts.
There has also been an overall increase in prices in the cryptocurrency market as buyers slowly re-entered the market.
Despite the price increase, the broader market remains fragile, making it difficult to determine whether XRP will continue to be bullish in the long-term.
Currently, XRP has found support at $0.30. As the price of XRP keeps falling, it is only natural that the coin may continue to witness relief rallies.
However, these rallies were short-lived and soon faded away. If XRP does not continue to form higher highs, the bullish trend may not sustain the bulls in the market.
Global Cryptocurrency Market Cap Today is $958 Billion, Positive Growth 0.1% within the last 24 hours.
XRP Price Analysis: Four-Hour Chart
The altcoin hit yearly lows on its charts this month as the bloodbath continued to expand. At the time of writing, the coin is trading at $0.33. Prices were previously showing consolidation as XRP traded between $0.24 and $0.31 respectively.
In the past 24 hours, the coin has moved out of this range and is priced at $0.33. Local support for the coin is at $0.30, while overhead resistance for XRP is at $0.38.
The $0.38 level acted as a strong resistance as the coin barely managed to surpass the aforementioned price level for several weeks. XRP volume is up significantly and the bar is red, but this indicates a bearish market.
The purchasing power of the token increases significantly, which in turn pushes the price higher. The RSI is above the 50 mark, a sign of the market’s purchasing power. The technical outlook is bullish, but the RSI has declined over the past 48 hours, suggesting weak buying power.
If XRP has to trade in the north, the coin has to break the $0.50 mark. However, for this, purchasing power must remain consistent. Likewise, the price of XRP is above the 20-SMA, which means that buyers are driving price momentum in the market.
Related reading | XRP Consolidated, Is It Time to Retrace?
Awesome Oscillator also depicts price direction and price reversals. The indicator flashes a green histogram as a buy signal. As shown in the chart above, the influence of the buy signal is reflected on the RSI. Chaikin money flow is also positive on smaller time frames.
This indicator points to capital inflows and outflows. On the four-hour chart, the CMF shows an increase in capital inflows and a decrease in capital outflows. Altcoins remain vulnerable despite bullish signals on the charts. Purchasing power needs to remain stable, and the altcoin can only stay above the bearish zone if there is considerable demand.
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Featured image from UnSplash, chart from TradingView.com