XRP Price Movement Analysis for 3rd May, 2021

Spread the love

 114 Interactions,  2 today

The XRP demand has become more volatile. While the digital asset surpassed $1 in April, uncertainty in the Bitcoin and Ethereum markets affected XRP, dragging it below the $1 mark on multiple occasions. However, since April 25th, XRP has not fallen to this stage and has increased by 60%.

At the time of writing, the price of XRP was $1.59, with a market capitalisation of $72.95 billion.

XRP 4-hour chart

The XRP map above highlighted a period of market instability highlighted by bulged Bollinger Bands, with only small intervals of low volatility where the bands converged. With the market’s high uncertainty, XRP may be heading for another correction.

Reasoning

Bollinger Bands have been used to predict times of high price uncertainty. However, at the time of publication, the Bollinger bands were convergent. In the past, these periods of consolidation were accompanied by a sharp price swing, and we may see a continuation of this pattern. On the maps, the effect of the market swing could be less pronounced. The signal line has crossed over the candlesticks, showing that the price is trending downward.

RECOMMENDED READ:  EOS Price Movement Analysis for 26th February 2021

Meanwhile, purchasing demand was decreasing as the relative strength index recovered from overbought territory. However, it has stayed close to the overbought region, indicating that selling pressure has been steadily increasing. Awesome oscillator noted that the price momentum has already moved to the bearish zone.

Crucial levelĀ 

Entry-level: $1.59
Take profit: $1.50
Stop-level: $1.63
Risk to Reward: 1.78

Conclusion

The latest XRP map shows that the digital asset has been unpredictable for some time. The present brief respite may be followed by a price drop as selling pressure builds. This decline will force XRP to test support at $1.50, after which it may consolidate further.

Leave a Reply

Contact Us