XRP price is currently trading near $1.44 on Sunday, February 8, after dipping to $1.21 earlier in the week. The price has been declining from its high near $1.94 in mid-January and has been trading in a weak market structure.
XRP Downtrend Deepens After $1.50 Break
According to CoinCodeCap Trading, the downtrend has been strengthened with the price breaking below $1.50 and creating a new lower low for the asset. However, oversold conditions around the $1.15 region have caused the price to rise.
“The bearish pattern remains until the chart prints a higher high and higher low.” There are two possible scenarios for the short-term price movement of the asset, as noted by the analyst.
If the price holds above $1.15, there is a possible price movement to $1.80 for the asset. However, if the price breaks below $1.15, there will be a price movement to $1.00. The support levels for the asset are $1.15 and $1.00, while the resistance levels are $1.80 and $2.00.
Source: X
Additionally, another analyst, Umair Crypto, mentioned that the price of XRP is facing significant resistance at levels lower than $1.63. He explained that the price reacted precisely as expected, near the $1.71 level.
The market structure saw the October 10 low and filled the fair value gap between the levels of $1.55 and $1.27. This resulted in a quick 30% drop and a rebound of nearly 20% upsurge.
Umair believes that the range between the levels of $1.46 and $1.26 may dictate the next macro leg. He explained that the overall trend is bearish and that the levels of resistance need to be broken decisively.
Source: X
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RSI Remains Weak, MACD Shows Easing Pressure
The Relative Strength Index (RSI) indicates weak momentum. The RSI is currently at 35.92, and the signal value is near 32.77. Although the RSI has recovered from the oversold territory, it is currently below the neutral line. This indicates that the overall market is experiencing weak buying pressure.
The Moving Average Convergence Divergence (MACD) indicates that the selling pressure is easing. The MACD line is currently at -0.1538, and the signal line is currently at -0.1225.
The histogram is currently at -0.0314. The histogram bars are increasing, which indicates that the selling pressure is easing. However, the MACD line is below zero, which indicates that there is no trend change.
Source: TradingView
XRP appears to be stabilizing, but there is no bullish formation. The market is likely to be range-bound as the price tests the support. Until strength overcomes resistance, the trend will remain bearish.
Also Read: XRP Surges Above $1.50 as Whale Accumulation Drives Momentum
