Connect with us

Analysis

XRP Price Analysis: 6 May

Published

on

XRP
Source: Unsplash

After facing tight resistance at $1.62, and following a re-test of the support of $1.41, XRP managed to breach above the aforementioned resistance at press time. With the asset moving back above $1.60, the price movement indicated a bullish behavior but the overall market structure may indicate the contrary.

At press time, XRP exhibited a market cap of $77 billion and its 24-hour trading volume was $15.8 billion.

XRP 12-hour chart

XRP/USDT on Trading View

XRP’s 12-hour chart currently indicated its position above resistance at $1.62, suggesting the potential to re-test its 2021 high at $1.966. However, the price structure of XRP showed a rising wedge pattern. This increases the chances of a bearish breakout in the next few days, but considering bullish momentum remains rigid, the price could move toward its next target at $2.30.

However, the chances of another re-test at $1.41 is likely higher, with trading volumes decreasing over the past few days as well. SSL indicator remains bullish for XRP, indicative of a buy signal in the chart but probable corrections will lead to a change.

Market Rationals

XRP/USDT on Trading View

Clear-cut bullish indicators are currently minimal with MACD being only slightly bullish at the moment. Bulls do not have an upper hand at the moment but Relative Strength Index suggested continued buying pressure at press time. However, the buying pressure may decrease as Awesome Oscillator suggested a decrease in bullish momentum.

At the moment, the market remains more neutral even though the price is seemingly rising in the 12-hour time frame.

Bearish on the Gann-Fan?

XRP/USDT on Trading View

According to Gann-Fan indicator, XRP exited a hyper-bullish position back on 21 April itself when the price moved below the 1:1 ratio line. Currently oscillating above the 2:1 line, it suggests that buying pressure is slowly decreasing in comparison to selling pressure, which is on a rise. To maintain its bullish outlook, the price needs to top $1.97 in the next few days, but it is more likely to head towards support at $1.31.

Biraajmaan covers market trends of major cryptocurrencies. As a graduate in engineering, his interests lie in Blockchain technology. With over a year as a journalist, his articles focus on US and UK markets.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *