Despite the prevailing bearish sentiment in the market last week, the Ripple (XRP) bulls showed their resilience by securing gains. XRP stood out among the top 20 cryptocurrency assets, with impressive weekly gains of over 8%. Although the daily chart showed a relatively modest increase of more than 1%, that was enough to maintain the bullish momentum.
The technical outlook for XRP showed an improvement in purchasing power, with demand and accumulation indicators reflecting a recovery on the daily chart.
However, the price movement of major altcoins remained uncertain as Bitcoin slipped back to the $26,000 price level. XRP’s future trajectory will depend on BTC’s performance in the coming trading sessions.
Buyers will become even stronger if BTC shows improvement leading to increased demand for XRP. Conversely, if demand does not increase significantly, it may hinder XRP price growth. Another positive sign was the recovery in market capitalization, pointing to increased demand and purchasing power.
XRP Price Analysis: One Day Chart
At the time of writing, Ripple (XRP) was trading at USD 0.46. The altcoin demonstrated a major break by surpassing the crucial USD 0.44 resistance level, boosting demand for the asset.
Looking ahead, the next hurdle for XRP lies at the $0.48 overhead resistance, which is expected to pose a serious challenge to the coin. However, if the altcoin manages to overcome this resistance level, it may be able to target the $0.50 mark.
Conversely, a drop from the current price level would bring XRP back to $0.44, possibly even below the $0.42 price mark. The recent session witnessed positive momentum for XRP, as indicated by the green altcoin traded volume bar.
Technical analysis
Upon the price break above the $0.44 level, buyers quickly entered the market, showing tremendous demand for the altcoin. This heightened interest is further supported by the Relative Strength Index (RSI), which is currently positioned above the half line, just below the 60 mark.
This indicates that buying power currently outweighs selling power, underlining the positive sentiment surrounding the altcoin.
In addition, the asset’s price has risen above the 20-Simple Moving Average (SMA) line, suggesting that buyers were driving the price momentum in the market.
The increase in demand for the altcoin is reflected in the buy signals observed on the one-day chart for XRP. The Awesome Oscillator determines price direction and momentum. It generated small green signals that were closely tied to buy signals for the altcoin.
This suggests positive price action for the coin, highlighting the potential for further upward movement. In addition, the Bollinger Bands, which measure price volatility and potential swings, maintained a broad range. However, the parallel alignment of the bands indicates that the altcoin can trade within a relatively narrow range in the coming trading sessions.
Featured image from iStock, charts from TradingView.com
