XRP will most likely drop down to $0.18 by May-end
When XRP recently lost its 3rd-ranked position to Tether, it created a massive stir in the community, but the larger space knew that the possibility was coming for a long time. XRP maintained its position as the 3rd largest digital asset with a market cap of $8.91 billion at the time of publishing, but USDT remained closed at $8.82bn.
Over the last 24 hours, XRP registered a positive turnaround of 0.76 percent and last day had a trading volume of $1.69 billion.
XRP 1-day chart
The XRP narrative was a bit strange but accurate, according to a recent analysis. As noted in the charts, XRP has maintained a significant price shift between the two trend lines that have taken the shape of an ascending channel. The ascending channel is indicative of a bearish break-up, and on 9 May the pattern underwent its break-up.
The bearish pullback brought XRP back under resistance at $0.21 as the asset was unable to cross the resistance at $0.23 during the rally towards the end of April. However, the current breakout is a healthy retracement for XRP, as the asset was able to stay above $0.197 in support.
However, the current price position might see the third-largest asset move in one of the two possible outcomes over the short-term. Another bullish rally should take XRP above the immediate resistance at $0.21 by the end of May. Strong trading volume supportive of the price in the past month suggested that the asset may have registered a strong bottom at $0.20.
The bearish narrative, however, can not be taken lightly as well. Despite the bullish rally on 29 April, XRP did not cross the 200-moving average and continues to act as a token resistance at press time.
Hence, another set of corrections may force XRP to re-test support at $0.18.
On observing the market indicators, the Relative Strength Index or RSI suggested that buying pressure has reduced significantly after having an upper for a better part of two months. High selling pressure is indicative of a correction phase. MACD also suggested that the continuation of a bearish trend as the blue line hovered under the red line.
Now, although the asset is likely to facilitate a further rally over $0.21, the current market indicators have been more likely to pull back, and the situation will become more transparent by the end of May.