XRP At $0.31, Will It Rise?
XRP has consolidated between $0.24 and $0.33 in the past week. The altcoin has seen a rise in the past 24 hours. XRP registered demand as the coin witnessed recovery on the chart.
The cryptocurrency market also registered an overall rise in price as buyers slowly re-entered the market.
The broader market is still vulnerable despite a price increase, so it is difficult to determine whether XRP will continue its upward trend in the long run.
At the moment, XRP has secured the USD 0.30 support level. As the price of XRP has continued to fall, it is quite natural for the coin to continue to witness upturns of relief.
However, these rallies are short-lived and fade quickly. If XRP does not continue to hit higher highs, the bullish trend may not be able to support the bulls in the market.
The global cryptocurrency market cap today is $958 billion with a positive increase of 0.1% in the past 24 hours.
XRP Price Analysis: Four Hour Chart
XRP was priced at $0.33 on the four hour chart | Source: XRPUSD on TradingView
The altcoin hit annual lows on the chart this month as the carnage continued to spread. At the time of writing, the coin was trading at $0.33. The price has shown consolidation before as XRP traded between $0.24 and $0.31, respectively.
In the past 24 hours, the coin passed the range and was priced at $0.33. The local support for the coin was at $0.30, while the overhead resistance for XRP was at $0.38.
The $0.38 level has acted as a solid resistance as the coin has barely managed to break above the aforementioned price level for weeks now. XRP’s traded volume rose significantly and the bar was in the red, but this indicated bearishness in the market.
XRP registered an increase in purchasing power on the four hour chart | Source: XRPUSD on TradingView
The coin flashed a significant increase in purchasing power, which in return has pushed the price north. The Relative Strength Index was seen above 50, which is a sign of buying power in the market. The technical outlook has painted a bullish picture, but the RSI has seen dips in the past 48 hours, pointing to fragile purchasing power.
For XRP to trade in the north, the coin must be above $0.50. However, this requires purchasing power to remain consistent. In line with the same, the price of XRP was above the 20-SMA, this meant that buyers were driving the price momentum in the market.
Related literature | XRP Consolidating, Is It Going Back Now?
XRP Flashed a Buy Signal on the Four Hour Chart | Source: XRPUSD on TradingView
The Awesome Oscillator also displays the price direction and price reversal. The indicator flashed green histograms which act as a buy signal. The effects of the buy signal reflected on the RSI as seen on the previous chart. Chaikin Money Flow was also positive about the shorter time frame.
This indicator points to the inflow and outflow of capital. On the four-hour chart, CMF showed an increase in capital inflows and a decrease in capital outflows. Despite bullish signals on the charts, the altcoin was still vulnerable. Purchasing power must remain stable and only then can the altcoin remain above the bearish zone with significant demand.
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Featured image from UnSplash, chart from TradingView.com