Ripple’s little victories against the United States Securities and Exchange Commission [SEC] have sparked positive sentiment in the spot market for XRP. XRP was pushed under the $1 mark owing to the volatile market in May, but with a recent recovery, it was once again trading above $1.
XRP was trading at $1.02, at the time of writing with a market capitalization of $46.48 billion.
XRP daily chart
Source: XRPUSD on TradingView
XRP’s $1 price level has been crucial, in terms of reaching its previous ATH. The current resistance was marked at $1.10 and XRP traded close to it. However, the overall bearishness in the market may make it difficult.
Unlike Dogecoin [DOGE] or Chainlink [LINK], XRP has not been an asset set out on an independent rally. Thus, XRP may not move higher unless the Bitcoin market experiences a price swing.
Reasoning
The 50 moving average remained way above the candlesticks indicating that despite a recovery, the market trend was largely bearish. As XRP traders dealt heavily at the current level, Visible Range histogram was showing a rise in activity. This rise in activity indicated the emergence of a psychological level at $1. If XRP drops under this level, it will be heading towards $0.77, which was immediate support.
The current consolidation phase has also pushed the momentum in the negative zone. This bearish divergence could be a sign of an impending correction in the market. Whereas, Directional Movement Index was already suggesting that downward pressure remained in the market.
Conclusion
The current XRP price was moving sideways and as much as it tries to hold on to $1, there is bearish divergence in the market. XRP price could test support at $0.77 which would help stabilize the price of the asset and could then make a U-turn towards $1, shortly after.
