The cryptocurrency market has seen unexpected volatility and the month of April was no different. While yesterday’s rally carried many alts to a new high, it helped XRP maintain its high price level. The surge witnessed by XRP through the month has once again pushed it higher on the CoinMarketCap list.
With a market capitalization of $63.80 billion, XRP was being traded at $1.40, at the time of press.
XRP daily chart
Source: XRPUSD on TradingView
The above chart of XRP highlighted that it was rallying higher since the beginning of April. Although its value witnessed a correction in the middle of the month, XRP still recovered and was trading close to resistance at $1.54.
As the coin moves forward, there could be another correction witnessed as the price moves to test resistance.
Reasoning
The price has been forming similar highs over the past couple of days which was a sign of consolidation. However, there was bearishness evolving in the XRP market that could push its value lower. This was indicated by Bollinger bands that have been converging as volatility reduces. Meanwhile, the signal line has been striving to take a position above the candlesticks.
At press time, buying pressure was well maintained. Relative strength index was near equilibrium as the buying and the selling pressures were on equal levels. Money was flowing into the XRP market as suggested by the Chaikin Money Flow. This has been a prominent trend since the beginning of the month.
Crucial levels
Entry-level: $1.30
Take Profit: $0.94
Stop level: $1.55
Risk to Reward: 1.39
Conclusion
Even though XRP was enjoying a bullish market, there was a hint of bearishness indicated in the market. Going forward, XRP will test resistance at $1.54; however, if it fails to surpass this level, the digital asset may be dragged down to $0.94.
