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The crypto industry has had a fascinating month in April, with a fast market surge followed by a major reversal over the last week. XRP reported a spot above $1 and went on to hit $1.96, but the commodity has fallen in the charts since then. Though market sentiment remains somewhat bullish, the pattern could be accompanied by further consolidation within the current range.
XRP 12-hour chart
The 12-hour chart of XRP currently shows a descending broadening wedge, and an upward breakout is expected shortly. However, market participants expected the price to rebound from the 50-period Moving Average, and the index failed to maintain its momentum. XRP retested the $1.18 level twice between April 18th and 22nd, but the asset did not break above the pattern.
With the price dropping below $1.18, the commodity can now face greater pressure in order to reverse the pattern and break beyond $1.24 or the 0.5 Fibonacci axis. Volume remains involved, implying that some of the sellers are likely selling to benefit from the initial market pump.
Other equity indications point to a similar bearish view. MACD is currently in a deep bearish trend, with the sell-side dominating. The Relative Strength Index (RSI) has hit a low not seen between mid-March and the end of February.
On-balance volume is now at a higher level, and maintaining this level will be critical for the price to rise. Although the prospect of a reduction in volume could lead to another bearish rally.
Ideally, XRP would stabilise for the next few days around $1.18, but an increase in traction could trigger dramatic changes. The market’s uncertainty remains strong at the time of publication, making the new price direction more volatile.