XRP’s price has surged by 29% within a day and this surge carried its value from $1.32 to $1.70. However, as the value appreciated to $1.70, sudden selling pressure was visible. This pressure pushed the value of XRP to $1.60 and this downward trajectory may persist.
XRP hourly chart
Source: XRPUSD on TradingView
As per the above chart, XRP was right above support at $1.59, however, with the growing selling pressure, it may be heading lower. The next support for the digital asset was visible at $1.55 which could be put to test soon.
Reasoning
The Bitcoin market was falling and given XRP’s correlation with it, the digital asset has been witnessing a strong plunge. The volatility in the market was rising as indicated by the widening of Bollinger Bands. The signal line had moved under the candlesticks. The signal line was pointing upwards and continued selling pressure could result in the signal line crossing over the candlesticks.
The rising buying pressure was visible with the relative strength index. The value of the indicator hit 72 before selling pressure increased. This high value suggested that the buying pressure was high and the market was saturated with buyers. As the price collapsed, more selling pressure was seen and this has pushed RSI to 64. A continued selling will push RSI toward the equilibrium zone where the selling and the buying pressure will level the market.
Meanwhile, momentum remained high and the XRP market could use this momentum to achieve stability.
Crucial levels
Entry-level: $1.58
Take Profit: $1.52
Stop-level: $1.63
Risk to Reward: 1.29
Conclusion
The current XRP market has seen a surge in price but it was followed by a subsequent drop. The price has hit $1.60 and might move towards the support at $1.55. With high volatility, XRP market may see a struggle between the buyers and the sellers.
