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The XRP demand has reached levels not seen since 2018. At the time of publication, the digital currency had finally reached $1 and was trading at $1.41. Despite a drop in market capitalisation to $45.40 billion, XRP has earned a quick boost among the top ten cryptos, climbing to fourth position on the CoinMarketCap list.
XRP 1-hour chart
The XRP chart above showed that after the price reached $1, it experienced further bullish traction. The price was rising within an ascending channel, but when it reached the resistance at $1.50, it retraced.
The price broke out of the ascending channel and started consolidating at $1.37, as seen. This abrupt increase suggests that a correction could be on the way as the coin goes forwards.
The market surge was precipitated by the courtroom drama between Ripple and the Securities and Exchange Commission [SEC] of the United States. However, XRP could be unable to maintain this standard because it has already started to experience small corrections. The Bollinger Bands showed an extremely volatile market at the time of publication.
The signal thread, on the other hand, has taken a position under the candlesticks, and a crossing is possible as it continues to point upwards.
Meanwhile, the relative strength index had moved the digital asset into the overbought range, but has since retreated below this mark. This implied that as the correction took effect, the asset would shift to a more stable equilibrium region. The MACD predictor also demonstrated the bearishness that had taken over when the MACD line fell below the signal line.
Take Profit: $1.23
Risk to Reward: 1.14
While the new XRP market is bullish, it is expected to get more bearish. Given the increase in selling pressure, the market’s unexpected rally could not be sustained. If the XRP market progresses, a reversal will cause the price to fall to the $1.23 support level.