XRP Price Remains Uninspiring, Investors Show Little Interest
Despite a single-day purchase of $299 million worth of XRP coins by whales, the price failed to exhibit a bullish trend. Currently, XRP/USD is trading at $0.52, with a marginal increase of 0.07% for the day.
In recent news, Ripple has announced its plan to sell 400 million XRP tokens this month in order to align the holding, market operations, and price volatility of XRP.
From a technical perspective, XRP/USD is currently in a short-term consolidation phase. The downside is limited around $0.48, while the upside is capped near $0.54. The critical trading zone at $0.52 is proving to be a challenge for the price. This area, which previously acted as a support zone, now acts as resistance. After reaching a high of $0.74, the price has dropped by approximately 46% in April.
Since April, the XRP price has struggled to gain significant momentum. The formation of a “Symmetrical Triangle” pattern indicates a lack of interest among traders. Within this pattern, the lows have been gradually increasing since April 13, while the highs have been consolidating in a narrow range.
Technical indicators support this lackluster sentiment. The Relative Strength Index (RSI) stands at 48, indicating an ongoing battle between bulls and bears. A shift in momentum could potentially lead to an upside breakout. The Moving Average Convergence Divergence (MACD) oscillator is also hovering near the central line, indicating a lack of directional conviction among traders.
In terms of support and resistance levels, if the bulls prevail, the first resistance lies at $0.56, followed by $0.61. On the other hand, the bearish trendline of the symmetrical triangle provides support at $0.50. A break below this level could open the doors for a further decline towards $0.46.
Traders are advised to wait for confirmation or a breakout of the price pattern before making any directional bets.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. The author’s opinions expressed in this article do not reflect those of The Crypto Basic. Readers are encouraged to conduct their own research before making any investment decisions. The Crypto Basic bears no responsibility for any financial losses incurred.