Disclaimer: The findings of the following article are solely the views of the writer and should not be regarded as investment advice
The XRP price has not done well since the beginning of December. While the world’s largest cryptocurrency Bitcoin has managed to surpass key resistance levels, the XRP price continued to trade within the limits of descending channel formation. In fact, over the past few days, it managed to break out in the expected direction – upwards. Although this hike was a welcome change, the coin still found itself 15 percent off its trading price from the start of the month.
At press time, XRP was trading at $ 0.569 with a market cap of $ 25.8 billion. According to CoinMarketCap, XRP registered a 24-hour trading volume of over $ 13 billion, after recording a minor dip of over 3 percent in 24-hours.
4 hour XRP chart
Source: XRP / USD, Trading View
Looking at XRP’s 4-hour chart gives one a little more clarity on how to operate XRP’s long-term pricing since the beginning of the month. After breaking out of the descending channel formation that set its price for almost the entire month of December so far, despite the upward slump, it experienced a wave of sideways movement. This made it a little difficult to determine what perspective a trader should take with regard to XRP, at the time of writing.
At press time, the coin was testing the support at $ 0.562, and if this support fails, the coin may fall toward the $ 0.509 price range. However, if the bulls can carry XRP weight, then it may soon encounter resistance at two key levels – $ 0.61 and $ 0.67.
Reasoning
Source: XRP / USD, Trading View
XRP seemed to have a slight trend reversal. The RSI indicator, after spending time in the over-thinking zone, entered the neutral zone. A similar scenario was also observed for the MACD indicator, with the Signal line about to pass the MACD line. The uncertainty of the indicators can also be taken as an indication of an aggregation step opening for XRP.
Collection
Although the XRP price appeared to have broken out of the steady decline it had been in since the beginning of the month and after seeing short bullish momentum helping its trading price, the coin looked set to settle into a short period filled with movement to the side. This seemed likely to lead to XRP trading between its direct support and resistance levels in the coming week.