Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice
XRP’s price has seen renewed bullish momentum since the start of the month. When compared to many top coins in the crypto-market, XRP’s surge has been quite unparalleled, with XRP managing to push its price up the charts by over 266 percent since 5 April.
At the time of writing, XRP was being traded at $1.75 with a market capitalization of over $80 billion, making it the 4th largest cryptocurrency in the market. Over the past 7 days, a 93 percent price hike was witnessed by XRP’s market. Interestingly, despite the previous week’s bullish momentum, XRP was noting a slight price correction at press time.
XRP 1-day chart
Source: XRP/USD, TradingView
The price of XRP has been surging for over a week now and it looks like it has finally met an adequately strong resistance level. Over the past three days, the coin has made multiple attempts to breach the $2-price level, having failed to do so each time. While this isn’t a bearish sign for the coin’s price, it goes to show that the bullish momentum in the market may be starting to see a decline.
In such a scenario, a price correction can be expected and this may push the price to its immediate support at $1.31. This price range was last witnessed on 12 April and did help push the price back up. However, if this support fails, then XRP may see a lot of its hard work undone as it may plummet towards the $0.85-range. However, given the present market conditions, it is hard to say if such a price drop will take place in the coming week.
If the first support is breached in the coming 48-hours, then traders can benefit from short positions and take profit close to XRP’s $0.8-range.
Rationale
XRP has seen a tremendous increase in bullish momentum in a little over a week. However, a slight correction may be in the works as the trend may soon change. Interestingly, the MACD indicator continued to maintain its bullish crossover, but the RSI was beginning to exit the overbought zone and may head towards the neutral zone in the coming week. This may signal a drop in bullish momentum.
Conclusion
XRP may make one more attempt to try and breach the current resistance level. If such an attempt fails, it may soon head towards its immediate support. For traders, if this level fails, then opening short positions on the coin may prove useful.
