XRP flashed a sign of revival; Where is it going?

The price of XRP has fallen significantly to a level last touched nearly 70 weeks ago. Right now, the price of XRP is trading near the immediate support level of $0.36.

Bitcoin remains on shaky ground as the coin tried to recover by moving past $30,000. As of going to press, the coin fell back to $29,700.

The majority of altcoins in the industry today have continued to amplify losses. The bearish pull remains strong in the market at the time of writing.

In the last 24 hours, the market has bottomed out and therefore another chance of a price rally can be considered.

The currency’s technical outlook shows a relief rally could be on the charts, but the macro market is still vulnerable.

Strength from the broader market would also be needed so that there are no more sellers than buyers in the market, forcing prices to fall again.

Price Analysis: One Week XRP Chart

XRP was priced at $0.42 on the one-week chart | Source: XRPUSD on TradingView

XRP was trading at $0.42 at the time of writing. The coin has shown signs of rebound as the coin has gained 10% in the past 24 hours. It is still quite uncertain whether XRP will manage to trade above the nearest $0.36 support line.

A break below that could cause the coin to dip as low as $0.13. With buyers returning, XRP may try to trade above the immediate resistance of $0.56.

XRP also flashed an equally high level on the one-week chart, this pattern is connected with bullish price action in the market. Toppling the immediate resistance could push XRP towards $0.68, and stay above that, which may help invalidate the bearish thesis in the market.

The XRP volume traded had increased and the bar was red, reflecting bearishness.

Technical analysis

XRP showed a decline in purchasing power on the four-hour chart | Source: XRPUSD on TradingView

XRP had been trying to drive a price rally, but continued selling pressure has fatigued the bulls. The same is reflected on the 20-SMA indicator.

The price of XRP was seen below the 20-SMA line. This reading meant that sellers were driving price momentum in the market.

On the Relative Strength Index, buyers re-entered after an intense sell-off in the market. XRP was no longer seen in the oversold zone on the RSI.

However, after the recovery, XRP fell prey to the bears again and the RSI flashed a decline, signaling increased selling pressure.

Related literature | Crypto Shorts See $240M Rising As Bitcoin Resurfaces Above $30k

XRP shows growing capital inflow on the four hour chart | Source: XRPUSD on TradingView

With the price rally, XRP technical data has shown an onset of positive price action. However, it is too early to tell if it is the start of a shift in price action.

Moving Average Convergence Divergence underwent a bullish crossover on the four-hour chart. The indicator flashed growing green histograms above the half-line, signaling bullish momentum for the coin.

XRP could also witness a price increase to the north as Chaikin money flow was seen above the zero line. This indicator reflects the number of capital outflows and inflows and according to the chart above, at the time of writing, capital inflows were greater than outflows.

Related literature | Bitcoin Recovers Above $30,000, Is the Bottom Marked?

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