After the huge drop in Ripple’s price over the last week, Ripple is back on track to a long-term trend. In this market momentum, the bulls should outnumber the bears.
Last week wasn’t a good trading week for Ripple buyers, as the XRP token recorded a massive 42% loss. Accordingly, $0.4255 was the closing price for the week. Notably, the entire week had the token’s price steadily following a huge bearish trend, declining to $0.4018 before climbing back to $0.4123 and terminating there for the week.
Notably, indicators are engrossed within the oversold area, which suggests a possibility for a temporary uptrend.
However, the token’s price must create a higher low and higher high to validate this momentum reversal. This also means that the bulls must push XRP’s price up to $0.65 before it can create form a bullish trend.
Are There Any Odds?
A massive fall means one cannot expect XRP token’s bullish momentum or bullish mean reversal to be sustained for long-term. However, it is possible to expect it will be very short-term given the current market structure. The technical oscillator’s value shows that the token tested the all-time-low (ATL) in the hourly, daily, and weekly charts.
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It’s also worthy to note that the token’s price is still trading below the 50-day & 100-day Exponential Moving Average (EMA). A renewed buying pressure could force the price above the 50-day Exponential Moving Average (EMA) before it reaches the psychological $0.50 mark.
A decline in bearish momentum on the other side would result in the coin continuing in a steady downtrend or decline. Should XRP break below the current session’s low value, it’d test Friday’s low at $0.40.
Technical Indicators
With steadily increasing bullish momentum, the MACD trades below the middleline. Relative Strength Indice: Although the RSI is close to its average line, it has no directional bias.
The Short Version of Ripple
Ripple is a unique crypto project. It functions as both a cryptocurrency, and as a gateway for payments. Ripple Labs created the Ripple cryptocurrency project. It allows users to make payments and lend crypto currencies. Ripple allows worldwide payments. However, users can swap between cryptocurrencies with the XRP token.
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Ripple, which was founded in 2012 by Chris Larsen and Jed McCaleb, is notable. To increase its integrity and XRP token, Ripple purchased BitLicense in New York State four years later. Ripple suffered a significant drop in value after the worldwide cryptocurrency crackdown.
Featured image by Pexels. Chart from TradingView.com