XRP price action has been more stagnant, with no specific direction and limited volatility
Last week saw a bullish trend in the cryptocurrency market, with numerous assets, including Bitcoin and Ethereum, experiencing price increases. XRP price, however, was an outlier since it kept consolidating without any apparent direction.
The current market is showing a worrying trend in the XRP price. As the trading volume has grown over time, the price has remained in a negative trend, which might portend a continuation of the slump soon. The crucial price for an uptrend is $0.38, and XRP is now trading around $0.3627. It seems unlikely that XRP will be able to break over this level and establish an uptrend unless there is a significant bullish move on the market.
XRP/USD 4-hour chart | Source: TradingView
Therefore, the constant rise in trade volume, considered a sign of solid market demand, is one cause for concern. But in this instance, a price decline is also present. This frequently indicates more sellers than buyers, which causes prices to keep falling.
The development of the downward channel that XRP has been trapped in for a while is another critical thing to consider. The asset has been unable to cross the channel’s top level, and there is a good chance that it will eventually break down below the lower threshold, accelerating the downward trend.
For a considerable amount of time, XRP has been mired in a close range between $0.32 and $0.43 and has been unable to break out. If the cryptocurrency successfully claims the upper trendline, it will potentially start a rally toward the $0.43 resistance level.
To cut a long tale short, XRP currently lacks a clear direction and is likely to consolidate for now. But, the anticipated price movement may stop the feeling of ambiguity and provide the mid-term outlook some direction.
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