XRP price is under pressure on Friday as the larger Cryptocurrency market has not yet been able to regain its momentum, resulting in limited risk appetite from Investors and increasing concerns about uncertain Macroeconomic conditions.
As traders watch Geopolitical developments occurring in the Middle East, their Risk Appetite has diminished even further, thus resulting in lower prices for many Digital Assets.
At press time, XRP price was trading around $1.32, posting mild daily gains but still holding below major resistance zones that continue to cap recovery attempts.
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XRP price struggles below resistance
The on-chain metrics from Glassnode also suggest that XRP may be close to the bottom of this bearish trend, with Glassnode’s NUPL recently falling further into negative territory, indicating that a number of holders are currently holding unrealised losses on their XRP holdings at this time.
When examining the capitulatory phase of XRP in chart, one can see that historically this phase has preceded a significant price recovery that has often occurred close to local bottoms, but once again, the fact that this indicator is still below the zero line confirms that there continues to be overall bearish sentiment in the market.
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XRP price technical outlook remains fragile
According to the data from TradingView, the XRP price is currently trading below both the Bollinger Bands’ midpoint and the 50-day EMA, which is also at approximately $1.39 – all of this continues to keep XRP’s overall trend down.
In fact, the momentum indicators are also showing weak price momentum, with the RSI having recently been in the low 40s.
The immediate resistance level for XRP appears to be between $1.38 and $1.44, while immediate support lies around $1.28. If XRP were to fall below $1.28, it is likely that downward pressure will increase significantly.
However, gradual inflows of ETF funds have been witnessed recently, which may assist with XRP’s gradual recovery in the short term.
Overall, the current price action of XRP still remains under downward pressure; however, the signals of capitulation and consistent ETF inflows provide evidence that a possible bottom may be developing if general market sentiment continues to stabilize and approach neutrality in the mid-to-near future.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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