After it fell below $0.37, the XRP price is again under pressure. Over the past week, the altcoin has seen a consolidation and a loss of 1.2% in its market value over the 24 hours. The XRP market price has declined by close to 8 percent in the past seven days.
XRP trading below its immediate resistance marks for so long has caused buyers to start losing confidence. Broader market weakness has also set it given Bitcoin’s move to $20,800 at press time. Many sellers saw that the technical outlook for Cardano has changed to bearish.
The chart had been dominated by selling strength due to the lack of Cardano demand. Altcoin traded close to the support level. The price action may continue, pushing the XRP price towards the next support level. It is crucial that XRP demand rises over the next trading session in order to regain the bulls.
Cardano Price Analysis: Four-Hour Chart
At the time this article was written, altcoin traded at $0.34. XRP was close to its nearest support level, so it could quickly fail to hold the $0.34 support. The nearest support level for the currency was at $0.31.
XRP’s overhead resistance was at $0.37, the bulls were rejected from that price mark as recently as a few trading sessions ago. If XRP struggles below the $0.37 level, it may reappear at $0.29 during the next trading session. The chart showed that XRP’s trading volume increased, which indicates an increase in selling pressure.
Technical Analysis
Altcoin’s buying strength fell at press time. The recent drop in the XRP price could have been due to market weakness.
Relative Strength Index fell below the halfway mark, which meant that selling pressure was stronger than buying strength.
The price of XRP fell below 20 SMA, which indicates that the demand was lower and that the sellers are driving market momentum.
The recent fall in price hasn’t been reflected in the other technical indicators as seen on the chart. XRP displayed a buy signal. The price momentum was indicated by the Moving Average Convergence Divergence. It also showed if there were any chances for a reversal.
MACD showed green signal bars at the half-line, which indicate a buy signal. However, they were decreasing in size. This was a sign of selling power taking over. Directional Movement Index measured price momentum.
While DMI was stable as the +DI level was elevated above the –DI line, +DI recorded a dramatic fall. The bullish strength is now completely gone, as the Average Directional Index (red), was lower than 20. A wider market and buyers could assist the coin in recovering.