The price of XRP experienced an increase after crossing the $0.50 mark; however, it has recently undergone another decline. Analyzing the daily chart, the altcoin is down about 3% in value, while the weekly chart shows an appreciation of about 6%.
The technical outlook for XRP points to a bearish bias due to a decrease in demand and accumulation on the chart. Purchasing power has weakened after the coin’s fall below the $0.50 threshold.
As Bitcoin entered the $30,000 price range, other major altcoins also began to appreciate on their respective charts, but remained limited below the immediate resistance levels. So it is crucial for XRP to cross the $0.50 mark to enable an upward move.
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Currently, the $0.50 price level is acting as a major barrier to convert into immediate support. If the altcoin can consistently trade above $0.50 for a significant number of sessions, it could start a rally.
XRP’s market cap has also declined, indicating a decrease in purchasing power.
XRP Price Analysis: One Day Chart
After failing to hold a price above USD 0.50, the altcoin traded at USD 0.49. With a small boost from buyers, there is potential for the altcoin to cross the $0.50 threshold again.
A key resistance level for XRP is at $0.53. If this resistance is overcome, XRP could make an attempt to trade above USD 0.56, resulting in a significant 12% rally.
Conversely, a drop from the current price level would return XRP to USD 0.47. The volume of XRP traded during the last session was in the red, indicating that the selling pressure was greater than the buying pressure.
Technical analysis
Despite a slight recovery in purchasing power, investor confidence has been dampened by the recent fall in prices. The Relative Strength Index (RSI) was positioned just below the half line, suggesting sellers outnumbered buyers at the time of writing.
In addition, the asset’s price fell below the 20-Simple Moving Average line, indicating a decrease in demand and a signal that sellers were driving the price momentum in the market.
However, despite a drop in sell signals on the daily chart, XRP remained under the scrutiny of sellers. The Moving Average Convergence Divergence (MACD), illustrating price momentum and its changes, showed red signal bars associated with sell signals.
The Bollinger Bands, which indicate price volatility and fluctuations, were broad but parallel, suggesting that XRP may not be trading within a narrow range.
Given this, it will still face significant challenges to surpass the $0.51 price level. However, a move above this level is expected to revive demand, possibly driving the price higher.
Featured image of UnSplash, chart from TradingView.com