XRP dropped by almost 17% from $0.7737 to $0.6516 on Monday. This fall can be associated with the bearishness that hit the Bitcoin market as the Chinese authorities tightened their noose around mining and crypto payments. As BTC collapsed to $31k, the altcoin market also followed suit.
However, the report about MicroStrategy’s massive investment in Bitcoin has returned some bullish sentiment back to the market. As BTC tried to recover from the weekend, so did XRP.
The hourly chart of XRP noted the price falling within a strong descending channel and the price is visibly breaking out from the channel.
The market was highly volatile due to the sudden surge in the falling market. Bollinger Bands had diverged indicating wild activity in the price of the digital asset. The falling price crossed under the 50 moving average once again triggering another sell-off. The price found support at $0.6623 and bounced back.
The following recovery broke the price out of the falling channel and could lead the price closer to resistance at $0.7043. Although there was downward pressure in the market, -DI and +DI were converging. This could be due to the entry of buyers at the current price level.
Stochastic RSI confirmed the entry of buying pressure in the market as RSI moved awy from the oversold zone towards equilibrium. The spot market was enjoying a brief bullishness in a largely bearish market. This momentary surge could lead the price to $0.7043, however, the sellers may take over after.
Take Profit: $0.6954
Risk and Reward: 2.16
The current XRP price broke out of a descending channel and was heading upwards. Traders can make a profit between $0.6954 and $0.7043. However, traders may want to remain alert of the selling pressure.