XRP’s price has lost nearly 40% of its value in the previous month, mirroring the volatility of major cryptocurrencies like Bitcoin. XRP’s poor performance hurt its profitability, resulting in a large number of investors losing money. However, technical signs suggest that the long-awaited recovery may be closer than it appears. In May, the XRP/USD daily chart saw its relative strength index (RSI) indicator’s reversal from the “oversold” zone sustained. At the time of this analysis, XRP/USD is trading positively with a 2.31% rise in 24 hours along its extended linear consolidation zone at $0.4000. XRP is a Ripple-affiliated cryptocurrency, that recently celebrated its tenth birthday. The XRP Ledger platform was released in June 2012 and has been running smoothly ever since. XRP witnessed a tremendous surge in 2017, surging more than 32,000 percent and briefly becoming the second cryptocurrency, despite claims of centralization. XRP recorded its all-time high of $3.84 on January 4, 2018, and has since declined more than $89% to date.
Key Levels
Resistance Levels: $0.5522, $0.5141, $0.4700
Support Levels: $0.4000, $0.3650, $0.3330
XRP/USD Daily ChartThe XRP/USD pair has prompted some dip-buying once again at the round-figure level of $0.4000, which is now a crucial critical mark for near-term traders due to linear consolidation along the zone. Any prospective push-up could run into considerable resistance at the $0.4700 mark, which, if broken, could act as a new catalyst for bulls.
Meanwhile, technical indicators on the daily chart maintained their ranging bias, although XRP might attempt to gain some positive momentum again, with some follow-through orders that point to a return to the high of the weekly range at the $0.4339 level.
XRP/USD 4-Hour ChartXRP/USD might attempt a steady bounce from the short-term support level of $0.4000, from which the pair is predicted to continue upwards towards the $0.4700 resistance area. The positive trend might be extended to test the next firm resistance in the $0.5141 horizontal area, which is considerably above the moving average (MA 200).
This short-term initial bias is neutral, indicating that recent consolidations are ongoing. The XRP/USD pair has also recovered almost from its May 12 lows of $0.3323, and it’s unlikely to swing back towards the low region. Once XRP rebounds past the $0.4500 level, the next move might see it to the high end of the April trading range at $0.8500.
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