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XRP Consolidates, Is It Going To Retrace Now?

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XRP Consolidates, Is It Going To Retrace Now?

XRP among other leading altcoins have been consolidating on its chart. Bitcoin slid below the $30,000 price level which has dampened the price action of altcoins. Over the last 24 hours, XRP made no price movement. In the last 24 hours, the altcoin gained a minor 2.4%.

On the chart, the coin displayed bearish price action as the coin might be breaking the consolidation. The coin currently has found support at $0.34. The coin last touched the price level in the month of February 2021. If the coin pushes below further then it may touch the support level of $0.28.

The global cryptocurrency market cap today was at $1.28 Trillion with a 0.7% positive change in the past 24 hours. If bulls still continue to struggle to break past the $0.43 resistance level then the coin is headed for another downslide.

XRP Price Analysis: One Day Chart
XRP was priced at $0.38 on the one day chart | Source: XRPUSD on TradingView

The coin was trading at $0.38 at the time of writing. The local support level for the coin stood at $0.33. If the coin continues to experience selling pressure then it could fall to a low of $0.28. Overhead resistance for the coin stood at $0.40.

For the bulls to be back, XRP needs to break past the aforementioned price resistance and trade near $0.43. The volume of XRP traded had plummeted as seen on the one day chart. The volume bar was seen in the red which showed bearish significance in the market.

Technical Analysis
XRP showed signs of recovery on the RSI on the one day chart | Source: XRPUSD on TradingView

The buying strength tried to rise on the chart. After the coin was oversold it recovered slightly as seen on the Relative Strength Index. At the time of writing, the RSI was above the oversold zone, despite the same selling pressure was strong in the market.

The price of XRP was struggling to move over the 20-SMA line. At press time the coin was still below the 20-SMA signifying that bears were driving the price momentum in the market. In case the demand for the coin shows up, the coin can move above the 20-SMA line which could push XRP to trade near $0.40 price mark.

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XRP registered a buy signal on the one day chart | Source: XRPUSD on TradingView

XRP could soon bottom out and then aim for the next resistance level. The coin displayed a buy signal on the chart. The Awesome Oscillator depicts the price momentum and it displayed a change in price momentum.

The green signal bars on the AO are synonymous to a buy signal which can also mean a change in the price action. The Directional Movement Index was positive which corresponded with the AO. The +DI was above the -DI line indicated bullish build-up.

The Average Directional Index was also above the 40 mark and that is a mark of price trend strengthening in the market.

Related Reading | Polkadot At $9.30, But Is There A Chance Of Slight Shift In Trend?

* This article was originally published here

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