The cryptocurrency market was back to its sideways movement patterns after weeks of sustained bullish runs. Major cryptocurrencies like Bitcoin, Ethereum and XRP were all affected by this and analysts are now predicting when the next climb will be.
XRP, the third-largest digital asset has been holding steady to its third position for quite some time now. Despite the price hike atmosphere, XRP struggled to reach its former glory days. At press time, XRP was trading for $0.236 with a total market cap of $10.314 billion. The 24-hour market volume was at $1.773 billion after witnessing weekly gains of 8.21 percent.
The one-hour chart showed a major dip in price since the 19th of this month. The perpendicular drop was slightly improved by a price overturn that occurred towards the end of the last day. XRP’s immediate support on the hourly chart was at $0.227 while the immediate resistance was at 0.25. A trend line drawn on the short term chart showed that the bull was still around the XRP territory.
The Parabolic SAR was below the price candles which meant that XRP was going through a bullish revival. Looking at the charts, it is evident that there was a bear hold before.
The Relative Strength Index for XRP was near the overbought zone and dipping. According to the RSI, the buying pressure was more than the selling pressure but the tables may be turning soon. This may be because of fear surrounding the price movement among the investors.
The Chaikin Money Flow indicator had crashed below the zero line for XRP. The zero line depicts the split between investor sentiment and capital flow. For XRP, the capital leaving the market had surpassed that of the capital coming into the market.
XRP’s daily chart painted a picture of a cryptocurrency bouncing along with its immediate supports. The candle formation was indicative of the price stagnating but recovering sporadically. The current immediate support was at $0.187 which was formed just below the start of the new year.
The Chaikin Money Flow for XRP in the long term blinked positive. The graph was above the zero line after capital flow into the XRP market increased due to an increase in volume. This was also the first time since November that the CMF stayed above for this long.
The Relative Strength Index was close to the overbought zone. This was also a positive reversal for XRP just like the CMF. Supporters of the cryptocurrency had a reason to rejoice as the RSI showed a renewed buy-in confidence.
The Parabolic SAR recently moved above the price candles. This came in the wake of the price stagnating this week. However, analysis shows that there is a chance for it to blink green again.
The above-mentioned indicators majorly pointed to a bullish route for XRP. Although the climb may not be significant it was still enough to keep it above the 20 cent mark. Some believe that XRP will only shoot up if Bitcoin starts climbing but that is not the case. XRP has mostly relied on use cases to build its reputation and the price will only increase if there is a significant volume increase.