XRP Price Movement Analysis for 2nd May, 2021

Spread the love

 170 Interactions,  2 today

Following a downturn in the third week of April, XRP has bounced by 48 percent in the final week of the month, and is currently consolidating above the $1.50 mark. The turnaround was swift, and the bullish trend remained intact throughout the downturn. At the time of publication, XRP had a market cap of $72.5 billion, placing it fourth on the list.

XRP 4-hour chart

When analysing the 4-hour chart of XRP, bullish characteristics are undeniable, but a probability of dying momentum is still seen. Over the last week, XRP has first stabilised in the $1.07 range, then risen to $1.41 and is now trading only below the $1.62 or 0.236 Fibonacci axis. While the SSL indicator appeared to show a buy signal and the 50-Moving Average remained a solid support, volume was significantly lower than in early April, when the price was at the same level.

RECOMMENDED READ:  Dogecoin Price Movement Analysis for 26th April, 2021

Resistance at $1.62 could become stronger during the current rally, and a re-test of an immediate support of 0.382 Fibonacci may occur in the future. A bullish breakout will open the door for a direct re-test of the previous high of $1.96.

Market Rationals

XRP/USDT on Trading View

The Relative Strength Index, or RSI, was in the overbought sector, and buying demand was meeting with greater resistance than in early April. MACD has reported a bearish convergence, with the signal line crossing over the bullish line. The Awesome Oscillator, or AO, also indicated an increase in bearish momentum, and the market is consolidating.

On-balance volume has remained higher, but traders can sell at this stage due to established profits.

Conclusion

A split of $1.62 would have increased the likelihood of a re-test at $1.92. The current outlook for XRP was more balanced than bullish.

Leave a Reply

Contact Us