The XRP market has been noting a strong uptrend over the past week. The digital asset witnessed a 10% rise in value in the last ten days and has held on to a value above $0.6. At the time of writing, XRP was ranked seventh on the CoinMarketCap list of top cryptos with a market capitalization of $29.04 billion and it was being traded at a value of $0.6222.
XRP 1-day chart
Source: XRP/USD, TradingView
The above chart noted that the price of XRP had maintained above the $0.2514 level since the beginning of 2021. However, that was the lowest price-range visible this year, and since then, the price moved to its annual high.
From the lowest price level, the XRP price moved higher and later found support at $0.4236, after which it had to surpass the resistance at $0.6545. However, despite the surge, the price has been unable to breach the resistance level. This lack of momentum in the market points to a correction setting in the market.
Reasoning
The volatility in the market had increased owing to the sudden surge, but it has come down as the price hit the resistance. The signal line was under the price bars along with the 50 moving average indicating the upwards trending price. However, currently, these two lines were acting as immediate support for the XRP price.
Whereas, the relative strength index was noting that XRP was about to enter the overbought zone. The value of RSI was 68 and the buyers had already saturated the market. However, the lack of momentum suggests that the buyers won’t be able to carry the price above the resistance and a price swing could occur here.
Important levels to watch out for
Entry-level: $0.6060
Take profit: $0.4170
Stop-loss: $0.6701
Risk to Reward: 2.95
Conclusion
The current XRP market painted a bullish picture, however, a price swing may be on its way. As the digital asset hit the overbought zone and lost momentum, the price may witness a strong correction pushing the value to $0.4236.
