Recently, XRP has experienced significant rejections at the overhead resistance level, including a rejection that happened just a week ago. On the daily chart, XRP has shown a slight upward movement of 3%. Over the past week, however, this altcoin hasn’t made much headway as its price is down 0.4%. This indicates that the XRP price is inconclusive over longer time frames.
The technical outlook for XRP suggests that the market is bearish. There is little demand for the altcoin and the accumulation also remained less. However, if XRP manages to break above its overhead resistance, it could trigger a recovery.
Currently, the BTC price is hovering below $30,000, and most altcoins have followed a similar trend. If BTC breaks the $30,000 mark, XRP could try to move higher.
At current levels, the altcoin is at a pivotal point as an increase in demand could trigger a rally, while a fall in price could lead to a loss of up to 16% of its value. In addition, XRP’s market cap has declined, indicating an increase in the number of sellers.
XRP Price Analysis: One Day Chart
The altcoin was trading at USD 0.47 at the time of writing. It is trading below its $0.48 overhead resistance. The aforementioned resistance feature is crucial as it has previously served as a price cap.
A break above the $0.48 mark could push XRP to $0.50, which could act as another cap before the altcoin hits $0.53. A move to $0.53 represents a rally of more than 10%.
On the other hand, a drop from the current price level will drag XRP to $0.44 and then to $0.40, returning bearish influence. The amount of altcoin traded during the last session was red, indicating a decline in demand.
Technical analysis
Since the altcoin dipped below the USD 0.50 level, the demand for the altcoin has not recovered. The Relative Strength Index (RSI) indicates that selling power is greater than buying power, as the RSI is below the half line.
In addition, the altcoin remains below the 20-Simple Moving Average (SMA) line, meaning sellers have control and drive the price momentum in the market. However, if demand for XRP picks up slightly, it could push the coin above the 20-SMA line. This would indicate a return of bullish strength to the chart.
In line with other indicators, the altcoin is displaying sell signals. The Moving Average Convergence Divergence (MACD), which indicates price momentum, has formed red histograms indicating the need to sell.
In addition, the Bollinger Bands, which depict price volatility and fluctuation, have opened. This suggests that the coin may experience significant price swings in the coming trading sessions.
Featured image from UnSplash, charts from TradingView.com
