XRP Price Movement analysis for 20th May, 2021

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After the crypto-market experienced sharp corrections on May 19, the XRP market fell below $1. In fact, at the time of publication, the valuation of XRP had fallen as low as $0.93 before recovering significantly. XRP was the seventh-largest cryptocurrency in the world, with a market capitalisation of $39.76 billion, and the alt was trading at $1.15.

XRP daily chart

Source: XRPUSD on TradingView

The daily map of the altcoin predicted the growth of XRP as a digital commodity as its value jumped over $1. However, the market’s continuous uncertainty has made it difficult for the market to hang onto this valuation.

At the time of publication, the value of XRP was located between its immediate support level of $0.90 and its immediate resistance level of $1.66. With the market stabilising after yesterday’s drop, XRP may attempt to challenge these immediate amounts, depending on the course of Bitcoin’s market.

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Reasoning

The convergence of the Bollinger Bands signalling a decrease in uncertainty. The bands had compressed and remained parallel to each other after a stretch of high volatility earlier this month. This meant that the XRP market would not be as volatile as it was previously. As uncertainty remained minimal, the Signal line moved above the price bars, emphasising the declining value.

Furthermore, selling momentum has persisted in the market following the sell-off. The Relative Strength Index, which had been bouncing between the oversold and overbought areas for quite some time, was about to fall below the oversold level. However, the recovered price moved the indicator higher, with the same reading 43 – attempting to achieve equilibrium.

Despite the increased buyer pressure, the XRP market stayed bearish due to the price decline. Momentum was leaving the market, particularly because capital was beginning to leave the market after nearly a month.

 

Crucial levels to watch out for

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Entry-level: $1.1781
Take profit: $1.7383
Stop-level: $0.9020
Risk to Reward: 2.03

Conclusion

At the time of publication, the XRP market indicated the existence of both bears and bulls. Despite the fact that the abrupt decline in its valuation gives way to the bears, investors have kept the market profitable. Buyers might attempt to drive the price of XRP higher up the charts, perhaps to the resistance level of $1.66.

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