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XRP bulls are trying to ride the wave along with Bitcoin to reclaim previously lost territory. Bulls aim for new yearly highs.
XRP has been trading in the green since the start of the year on a strong recovery and bullish sentiment from its investors. At press time, XRP is trading at $04.96, representing a gain of 0.78% in the last 24 hours. The token is auctioning 34% below its 2018 high of $3.40.
Can XRP Sustain Its Bull Streak?
XRP started the year with the spike in volatility that characterizes the market and has been able to turn in an 11.85% gain in the last 30 days, pushing its market cap to $20.6 billion.
Moreover, the trading volume that XRP has experienced in recent days and weeks and the favorable trend of XRP indicate that market makers are involved in the project. According to the latest report from NewsBTC, it is safe to assume that XRP whales are once again buying and collecting tokens.
This increased activity in XRP Ledger’s native token means that more wallets are being created with large amounts of XRP. While the perspective of many investors may be bullish, we can also find tracks that lead us to consider a bearish scenario.
XRP was able to break the trendline touching three key levels and continue its upward trend to find ground in the following challenge represented by $0.5.
XRP Heaven or Hell Tiers
Despite the previous breach of the target zone, there are strong signs that XRP’s bullish days are numbered. The current market scenario, where several tokens are consolidating or forming a price range, suggests that price action could explode in all directions.
Like any other key moment in the market, this leaves XRP with two scenarios, which are explained in the following chart:
XRP was able to break the trendline touching three key levels and continue its bullish momentum to find ground in the following challenge represented by $0.5.
On the daily chart above, XRP has formed a bearish divergence, which may indicate a significant pullback for the token. The Relative Strength Index (RSI) sits at 42.51, approaching oversold territory, but for XRP, there needs to be a correction in the daily time frame before price action can follow the RSI indicator.
If this is confirmed, XRP could significantly retreat to the $0.36 support level. If the bulls cannot stop this hypothetical scenario, the token could also lose ground and test the $0.288 level.
In short, XRP needs to find its momentum before a significant correction in the token and cryptocurrency markets, with Bitcoin (BTC) and Ethereum (ETH) forming a bearish divergence on the daily chart.
Confirmation of the bearish divergence for XRP will be complete when price action breaks below $0.379. In that case, the bears may find themselves in the perfect scenario to slide down the hill to visit lower prices. If XRP’s slide continues, it could retest $0.33, the next key line of support for the token.
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