- XRP rose 22.68% over the past seven days, while trading volume increased 46.55%.
- Despite these recent gains, the overall market trend remained bearish.
Recently Ripple [XRP] saw a significant decline, from a high of $0.6480. Following the market’s recovery from the crash and Ripple’s settlement with the SEC, XRP prices rose.
However, it has struggled to maintain recent gains, continuing its earlier bearish momentum.
Despite XRP’s failure to maintain gains, analysts are betting on its prospects. As far as, Ledger man predicted a further rise to a record high, noting that:
“XRP could potentially rise from $1 to $10 or even above, driven by anticipation around the XRP ETF, #Ripple stablecoin, and after paying the $125 million fine.”
However, as it stands, AMBCrypto’s analysis showed that the altcoin was in a strong bearish trend, with recent losses outweighing recent gains.
What the XRP price charts indicate
At the time of writing, XRP was trading at $0.5744, having risen 22.68% in the past seven days. Likewise, the altcoin has risen 12.60% over the past month.
XRP trading volume has also increased by 46.55% to $1.4 billion over the past 24 hours.
Source: TradingView
However, despite these gains, overall market sentiment was bearish. Looking at the CMF, it was -0.03 at the time of writing. This suggests there is more selling pressure than buying pressure, creating bearish sentiment among dominant sellers.
Also, the RVGI was below zero, indicating that prices are closing with higher lows than the opening prices. This further proved that selling pressure was dominant and the market is in a strong downward trend.
Source: TradingView
XRP’s DMI and Aroon lines further proved that downward momentum was strong. The positive index of the DMI at 22.38 was below the negative index at 22.43.
The Aroon Down was also at 50%, above the Aroon Up at 14.29%. This showed that XRP was experiencing continued downward trend momentum.
Source: Coinglass
Looking further, AMBCrypto’s analysis of Coinglass showed that XRP’s Open Interest had fallen from $691 million to $578 million. This suggested that investors were closing positions without opening new ones.
Source: Coinglass
Finally, XRP’s net flow has been negative over the past month. This showed that investors did not have confidence in the altcoin, which led them to sell their positions while moving assets to exchanges to sell.
XRP retests the key support level
In less than two weeks, XRP has fallen from a high of $0.653. The altcoin has failed to maintain momentum above $0.6 despite recent gains. At the time of writing, XRP was facing resistance around $0.61.
Realistic or not, here is the XRP market cap in terms of BTC
If the daily candlestick closes above the $0.580 support level, it could bounce back to the next resistance level, around $0.6.
However, if it fails to hold close above $0.58, it will fall to critical support around $0.55, with a break below this level pushing the altco further towards $0.52.