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Analysis

XRP Price Analysis: 17 May

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Source: Pixabay

XRP witnessed a strong correction making its way to the market over the weekend in the short term. As the price of XRP hit $1.61, a downward trajectory began which pushed the price of the digital asset as low as $1.32. However, after finding some support at this price level, XRP’s value bounced back and it was currently trading at $1.40.

At press time, XRP has moved to the seventh position on the CoinMarketCap list with a market capitalization of $49.58 billion.

XRP daily chart

Source: XRPUSD on TradingView

The XRP chart above suggested that the market has seen a burst of volatility in mid-April, where the price of XRP surged. After this, XRP was trying to maintain its price by moving sideways and may continue with this trend.

Reasoning

The market experienced upward price movement since April, however, the high value of the digital asset could not be maintained. As a correction made its way in the market, XRP traders held on to a high value and moved sideways. At the time of press, the price broke out higher from the descending channel, however, this breakout was not enough to test resistance at $1.79.

Bollinger Bands were converged indicating a restricted movement of the price. Meanwhile, the signal line has moved above the candlesticks suggesting that despite an upwards breakout, the price was still trending lower. The lack of volatility could also be due to equal buying and the selling pressures seen in the market. The relative strength index highlighted this as its value remained at 50.

Conclusion

With a lack of wild price movement, volatility has remained less in the XRP market. Momentum has escaped the XRP market and the asset may continue to trend sideways in the long term.

Namrata is a full-time journalist at AMBCrypto covering the US and Indian market. A graduate in Mass communication, while majoring in Journalism, she writes mainly about regulations and its impact with a focus on technological advancements in the crypto space.

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