From the peak of $1.70, XRP’s value has plunged by nearly 40%. The fall has rendered many investors in loss, but the market has been striving to push the value of the coin above $1. However, the short-term chart suggested that XRP was forming a restricted range and may continue moving sideways.
At the time of press, XRP was trading at $0.99 and was reporting a market capitalization of $45.96 billion.
XRP hourly chart
Source: XRPUSD on TradingView
The above chart makes it clear that the price of XRP has been trending lower since its peak. The price has consolidated on various support on its way down but has not been able to hold on. After the price dropped to $0.60, the market was retracing and the XRP value had risen within an ascending channel carrying it as close to $1 as possible.
Despite the momentum offered by the recovering market, the price was now stuck between resistance $1.05 and support $0.94. As selling pressure evolved at the current price, buying momentum was leaving the market.
Reasoning
The visible range indicated that the market was most active at the $0.8891 price level. This level acted as a point of resistance during the recovery, but the price was able to surpass this level and move higher. However, with stronger resistance at $1.05, the path forward appeared tougher. While the price has recently established support at $0.94, this level has also been seeing a rise in trading activity.
Low volume has been supporting this price range which could suggest that the price volatility may remain low. As the price tested resistance the last time, XRP was pushed into the overbought zone. With the emergence of selling pressure, it was sent back under the overbought zone. Nevertheless, the relative strength index has been noting that the market has remained saturated with buying pressure.
Conclusion
The XRP market in the short term lacks momentum to make a higher move. With the price currently recovering from the past week’s fall, it may continue to trade between its immediate resistance and support. A switch in market volatility and momentum could push the price higher, but for now, we may see a consolidation phase take shape.
