The cryptocurrency market noted a fresh decline as Bitcoin dived below $35K. XRP also closely followed the king coin’s price movement and breached a key support point. As it attempted to stop the downturn, the digital asset’s weekly losses were down to 0.03%.
Earlier this week, XRP had initiated a relief rally which was cut short by the latest corrections in the market, as sellers continued to spring up in action with each upward move by the altcoins.
Over the past 24-hours, XRP was down by 1.84% which pushed its price to $0.881. At the time of writing, the sixth-largest crypto-asset registered a market cap of $40.62 billion and a 24-hour trading volume of $5.46 billion.
XRP Daily Price Chart:
XRP might have just formed a bottom following the recent price action. After the back-to-back plunges, the moving averages climbed above the price candles thus depicting a bearish phase for the coin. The 50 DMA [Pink] moved over the candlestick arrangements on the 19th May market-wide crash. Following its suit was the 100 DMA [Blue] almost a week later as the token’s upside movement came to an abrupt halt.
Even as both the DMAs resisted an uptrend, the moderate volume could effectively lift the price of the crypto. In addition, the increased volatility could also result in a sharper price swing in the near-term.
According to the red closing bar of Awesome Oscillator, the market momentum lay on the bearish side. After hovering in the bearish realm for nearly a month, the MACD could witness a reversal in trend. This, in fact, could depict the formation of strong support at the current level and eventually a growing buying demand in the market.
On the other hand, the RSI’s downtrend indicated a weakening trend. But that does not negate possibilities of a potential reversal that can be expected from the oversold region.
A break below the current price level could result in a retracement towards $0.58. If XRP happens to suffer steeper corrections, it would likely face another defensive line at $0.42. Contrastingly, a breakout above the $1.03 resistance could bring back recently established highs of $1.39 and $1.59 at play.