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After the beginning of the month, the price of XRP has regained its bullish momentum. As compared to many other top coins in the crypto-market, XRP’s rally has been somewhat unprecedented, with XRP managing to drive its price up the charts by more than 266 percent since 5 April.
At the time of publishing, XRP was trading at $1.75 with a market capitalisation of more than $80 billion, making it the market’s fourth largest cryptocurrency. The XRP market has seen a 93 percent price increase in the last 7 days. Interestingly, considering the previous week’s bullish momentum, XRP was experiencing a minor price reversal at the time of publication.
XRP 1-day chart
For more than a week, the price of XRP has been surging, and it appears that it has finally encountered a sufficiently high resistance range. Over the last three days, the coin has made several attempts to break through the $2 barrier, but has struggled each time. Though this is not a bearish indicator for the coin’s valuation, it does indicate that the market’s bullish momentum might be waning.
In such a case, a price reversal is likely, which could bring the price down to its immediate support level of $1.31. This price range was last seen on April 12th, and it did help drive the price back up. However, if this support fails, XRP’s hard work will be undone when it falls into the $0.85-range. However, considering the current market conditions, it is difficult to predict whether such a price decline will occur in the coming week.
If the first support level is broken in the next 48 hours, traders will gain from short positions and profit around the $0.8-range for XRP.
In little over a fortnight, XRP has seen a huge spike in bullish momentum. However, a minor correction could be in the works as the pattern is likely to reverse again. Interestingly, the MACD indicator maintained its bullish crossover, but the RSI was exiting the overbought zone and may head towards neutral in the coming week. This may indicate a reversal of bullish sentiment.
XRP can make another attempt to break through the current resistance level. If such an attempt fails, it can quickly seek urgent assistance. If this level fails, traders can find it useful to open short positions on the coin.