While almost the entire crypto market was falling, the cryptocurrency Ripple suddenly jumped higher, however, already all those gains were engulfed, which makes the danger of falling further continue to rise. Here is a technical analysis of XRP to find out where it is going.
At the time of this writing XRP is trading at $ 0.84, accumulating a gain of 1.16% in the last 24 hours and 4.63% in the last 7 days.
The catalyst behind the recent rally was the announcement of a Ripple partnership with the Republic of Palau, in order to explore how to develop a digital currency for that country using the new XRP Ledger network.
Ripple’s dive into the CBDC market is generating some positivity in the XRP cryptocurrency market; However, the widespread downtrend in the crypto ecosystem does not allow gains to spread too far.
XRP technical analysis
In Ripple’s weekly chart we see that the price has been locked in a large symmetrical triangle for months, with decreasing volatility, and that it does not allow movements to spread too far.
We can say that the price of XRP is locked in a large price range, with no clear direction. However, the previous dominant force is bullish, so the triangle is likely to be pierced by the top, which would usher in relevant momentum.
Doing a technical analysis of the XRP daily chart, we can notice a smaller range, with resistance at $ 0.86 and support at $ 0.76.
The short-term trend is clearly bearish. However, the strong rejection of low prices, plus the rectangle in which the price has been locked, are good signs of a possible reversal.
At the moment it is more likely that we will see some more losses over the next few days. But, the large demand zone above $ 0.60 could slow down selling, and give way to a major bullish rally.
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