Although XRP Price is still experiencing selling pressure near the critical support range, it’s at the bottom of an overall bear market, having been used mainly for cross-border money transfers.
The cryptocurrency has recently seen a bounce off its extreme lows due to technical oversold indicators (relative strength index) and increasing optimism in the XRP community. At press time, the coin is trading at $1.22, with an increase of approximately 1.0% over the past 24 hours.
XRP Price Faces a Crucial Test Near $1.20
According to the data from TradingView, XRP price indicates a price movement between $1.20 and $1.32, which was previously viewed by XRP as an important resistance point. The market will be in bearish conditions while XRP continues to print lower highs and lower lows on its price chart.
As per this chart, the relative strength index indicates that the XRP market has reached an oversold status and may have reached the maximum extent of downward movement for the immediate future; however, MACD continues to support downward market sentiment with negative histogram bars.
To re-establish market bullishness for XRP, the market participants in the XRP bull community will need to price XRP above $1.32; if XRP establishes strong bullish support above this level, the XRP bulls may be able to extend their recovery all the way back to the $1.43 resistance level.
Also Read: XRP Price Risks 10% Drop as Analyst Predicts Move to $1.14
XRP Supercycle Narrative Gains Attention
On May 15, 2019, X User YoungHoon Kim (@yhbryankimig) shared a post promoting an XRP theme as well as introducing XRP (XRPS) at the price of $100 and encouraging people to “Start now“. Additionally, the post contained the phrase “XRP SUPERCYCLE STARTS HERE“, which indicates that many people expect XRP’s price to increase during the upcoming super cycle.
Despite showing signs of a bullish trend in XRP, using sentiment-driven narratives alone usually does not lead to sustained changes in price; however, the two often come together if there are common oversold conditions in the market.
If the technical analysis shows oversold conditions, it indicates an opportunity to enter the trade, which will typically lead to buyers entering before the technical confirmation takes place.
In addition, XRP price has recently tested this important level with a continued bearish move, even as oversold levels of technical indicators are in place for the period.
Therefore, while there are currently several signals that indicate a potential for a rally in XRP, the only way to confirm would be through a breakout above key resistance levels.
Additionally, until XRP has established strong support above key levels, both bullish and bearish scenarios remain possible.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read: XRP on Bitwise Powers Strong $259M Tokenized Fund
