XRP price is approaching danger zone after crash, but there are also positive signals
XRP has gone hard on its plate and the course is back to square one. But perhaps most of the pain is already behind us.
Ripple's XRP has almost completely surrendered the recent surge to $1.70. The price fell to 1.03 dollars yesterday, bringing it dangerously close to the psychological limit of 1 dollar. Newsbit technical analyst Erik Juffermans examines the current state of the popular currency.
The XRP price recently lost the $1.30 mark and has been falling very quickly since then. It turned out that even the $1.15 zone did not offer any support as Juffermans had initially expected.
The rate has now returned to the $1.05 zone. This zone provided strong support last summer. In this zone, the price now seems to be calming down with a strong volume. According to the analyst, this is a signal that buyers are reappearing at current prices.
We also see bullish divergence on the four-hour chart. This happens when the price is at a lower bottom while the RSI (a momentum indicator) is at a higher bottom, and this is a bullish signal.
After the hard crash from 1.30 dollars, we are looking for a possible bounce. With the bullish divergence, high volume, and return to an important zone, the ingredients now seem to be coming together for this bounce.
A first price target is thus 1.15 dollars. 1.25 dollars is a second zone at the top that we are keeping an eye on.
At the bottom, the limit of 1 dollar threatens. According to Juffermans, a decline to the low of August at 0.99 dollars is not excluded. Especially if the selling pressure in the crypto market continues.
The bearish XRP sentiment coincides with a broader wave of price pressure within the market. Bitcoin (BTC) fell below the $73,000 mark this week, losing the important $75,000 mark.
This hit altcoins especially hard. Ethereum (ETH) is also under pressure and declined towards the psychological limit of 2,000 dollars.