XRP, the cryptocurrency known for its association with Ripple Labs, experienced a correction period for over a week and a half, losing its bullish momentum after hitting a yearly high of $0.94. Despite receiving a favorable ruling as a non-security token, XRP’s price encountered resistance, currently trading above the $0.70 mark, with the $0.66 level acting as crucial support.
Positive Signs of Price Appreciation Amid Sideways Trading
Over the past 24 hours, XRP has been trading sideways, but it shows potential signs of price appreciation. The technical analysis reveals a leaning toward bullish sentiment, with positive buying strength, demand, and accumulation. The emergence of a pattern suggesting further bullishness is possible, but XRP must maintain support at the $0.66 and $0.56 levels.
Critical Resistance Levels and Market Capitalization Increase
For the bulls to retain market control, breaking through critical resistance levels at $0.76 and $0.84 is essential. The altcoin’s market capitalization has increased, encouraging positive developments for XRP. At the time of writing, XRP is trading at $0.71, with the price chart showing the formation of a bullish reversal pattern known as a cup and handle.
Bullish Potential Hinges on Breaking Resistance Levels
While the cup and handle pattern is positive, XRP’s true bullish potential lies in surpassing the significant resistance levels at $0.76 and $0.84. After reaching a yearly high of $0.94, XRP encountered resistance at $0.84 twice. On the downside, if the price declines from the current level, XRP may find support at $0.66 and then at $0.56.
Buying Strength Indicates Positive Sentiment
Recent trading sessions have shown consistent buying strength for XRP. The Relative Strength Index (RSI) has held steady around the 60-mark over the past few weeks, indicating buyers have maintained control of the price action. This positive signal suggests that more buyers may enter the market if the price exceeds $0.66. XRP’s price has also remained above the 20-Simple Moving Average (SMA) line, affirming the market’s buoyant demand and active buying pressure.
Decreased Sell Signals and Potential Price Volatility
With the surge in purchasing power, XRP exhibits a decline in sell signals. The Moving Average Convergence Divergence (MACD) shows changes in price momentum, with red signal bars appearing below the half-line, indicating decreased sell signals. However, the Bollinger Bands suggest a likelihood of price volatility and fluctuations in the upcoming trading sessions. The considerable widening of the bands indicates the potential for significant price fluctuation shortly.
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