XRP Consolidates, Is It Going To Retrace Now?

XRP and other top altcoins are consolidating on the chart. Bitcoin prices fell below the $30,000 level, which has impacted altcoins’ price movements. In the past 24 hours, there has been no movement in XRP’s price. The altcoin has gained 2.4% over the past 24 hour.

As the coin may be breaking through the consolidation, bearish price movement can be seen on the chart. At $0.34, the coin is finding support. In February 2021, the coin reached the $0.34 price point. It may reach the support level, $0.28, if it pushes lower.

Global cryptocurrency market capitalization today stood at $1.28 Trillion. This represents a 0.7% increase in 24 hours. The coin could slide further if bulls fail to overcome the $0.43 resistance.

The XRP Price Analysis for One Day
Source: XRPUSD on TradingView| Source: XRPUSD on TradingView

As of the writing, the coin was currently trading at $0.38. Local support for the coin was $0.33. The coin could drop to $0.28 if it continues to face selling pressure. The coin’s overhead resistance was $0.40.

For bulls to return, XRP has to move near $0.43 and break the aforementioned resistance. As seen in the chart, the volume traded for XRP had dropped. This was a bearish signification in the market.

Technical Analysis
Source: XRPUSD on TradingView| Source: XRPUSD on TradingView

It was evident that the buying strength attempted to climb on the chart. As shown on the Relative Strength Index, the coin’s price recovered somewhat after being oversold. Despite strong market selling pressure, the RSI was still above the oversold level at the time of writing.

The 20-SMA was a line that the price of XRP struggled to cross. The 20-SMA line was not crossed at press time, indicating that the bears are driving market price momentum. The coin may move up to the 20 SMA line if there is demand, which could lead to XRP trading near the $0.40 mark.

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XRP has registered a buy sign on the 1 day chart. Source: XRPUSD tradingview| Source: XRPUSD on TradingView

XRP may soon reach its bottom and target the next level of resistance. On the chart, there was a buy signal. The Awesome Oscillator displays the price momentum. There was a change of price momentum.

The AO’s green signals are a sign of a buy signal, which could also refer to price movement changes. Positive Directional Movement Index corresponded to the AO. A bullish buildup is indicated when the +DI crosses above the –DI line.

Also, the Average Directional Index was above 40. This is an indicator of market price strength.

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