The Bitcoin market has undergone a bit of market correction. However, after slight corrections in the Bitcoin market, the XRP market saw a sudden rise in value. At the time of writing, XRP experienced a 29 per cent spike in an hour, but it traced back a little in the same time frame. Currently, XRP was trading at $0.5894.
XRP 4-hour chart
Source: XRPUSD on TradingView
The XRP chart above noted that its price was lower by day and found stability between $0.5854 and $0.5119. Meanwhile, the stabilisation gave way to bears on the market, and the overall market pattern shifted to a bearish one.
However, the sudden surge observed in the last few hours was not the result of organic development. The market will therefore face difficulties in maintaining this price level.
Reasoning
The XRP market has just seen a price swing. Notwithstanding the prevalent trend in the industry, the value of the cryptocurrency has increased. This also triggered a momentary reversal of the trend. The 50 moving average was above the candlesticks and served as a resistance, but the pattern seems to have changed as the MA is now below the price bars.
While the relative strength index was closer to the oversold category when the price spike took place, it has now shifted closer to the equilibrium zone. Given the change in price patterns, both buyers and sellers were at night.
As the essence of the new rally tends to be inorganic, the gigantic oscillator has shown a low market traction to keep up with the current price level. Instead, it has switched to the better side, but remains inactive.
Conclusion
The XRP chart above showed a rally leading to a share price swing. However, there was not enough traction on the market to support a high price level. A correction could therefore be made on the market after a short period of consolidation.
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