The ongoing recovery trend in the XRP price recently hit a major roadblock at the $0.55 resistance level. This high supply zone, combined with a bearish market sentiment, has prevented buyers from making further recovery and has turned the coin price into a sideways trend. As a result, the XRP price is currently resonating between the $0.54 and $0.486 levels, creating a narrow range formation.
This range formation indicates that the coin price is wobbling in a no-trading zone. The XRP price can maintain its recovery trendline as long as the $0.486 support remains intact. The intraday trading volume in XRP is $1.28 Billion, indicating a 10% gain. Over the past two weeks, the coin price has rebounded from the aforementioned levels twice, suggesting that traders are respecting these chart levels.
At the time of writing, the XRP price traded at $0.50, and with a 2.87% loss, it has recently reverted from the resistance. If the bullish momentum rises, the coin price may fall another 3.4% to retest the bottom support. For traders interested in this asset, the range breakout may be crucial to determining the future trend.
While the current trend in the XRP price is bullish, a potential breakout above $0.55 with a daily candle closing could intensify the bullish momentum and push the price above $0.6. However, if the ongoing range formation results in a bearish note with the breakdown of the $0.486 support, the underlying selling pressure in the XRP price will increase significantly. This breakdown will offer sellers additional resistance to pressurize prices to lower levels, possibly causing coin holders to witness a swift fall to $0.4475, registering an 8% loss.
The 50-day exponential moving average (EMA) wavering at the $0.486 support level enhances the strength of this support level. However, a significant bearish divergence in the daily relative strength index (RSI) slope reflects a higher possibility of bearish correction. This combination of factors makes the future trend of XRP somewhat uncertain.
In conclusion, the current market conditions for XRP are a compelling mix of bullish and bearish indicators. With this in mind, traders should carefully consider their positions and closely monitor developments in market sentiment and technical analysis to make informed decisions about their investments.
Source: Coingape
