The price of XRP continues to show a lack of activity and is trading within a narrow range, indicating a lack of interest from investors. Despite whales purchasing $299 million worth of coins in a single day, the price has not shown any bullish movement. Currently, XRP/USD is being traded at $0.52, with a marginal increase of 0.07% for the day.
In recent news, Ripple has announced plans to sell 400 million XRP tokens this month in order to align the holding, market operations, and price volatility of XRP.
From a technical standpoint, XRP/USD is currently in a short-term consolidation phase. The price is capped at around $0.48 on the downside and limited to around $0.54 on the upside. The critical trading area at $0.52 is proving to be a struggle for the price, as it is acting as a resistance zone after previously serving as a support area. Since reaching a high of $0.74, the price has declined by approximately 46% in April.
Since April, the XRP price has been struggling to gain significant momentum. The formation of a “Symmetrical Triangle” pattern indicates a decrease in traders’ interest. Within this triangle formation, the lows have been gradually increasing since April 13, while the highs have been decreasing within a tight range.
In terms of technical indicators, the Relative Strength Index (RSI) is currently at 48, indicating an ongoing battle between bulls and bears. A shift in momentum could lead to an upside breakout of the price pattern. The Moving Average Convergence Divergence (MACD) oscillator is holding near the central line, suggesting a lack of directional conviction among traders.
In terms of support and resistance levels, if the bulls gain the upper hand, the first resistance level will be around $0.56, with potential further resistance at $0.61. On the other hand, the support level for the XRP price lies along the bearish trendline of the symmetrical triangle at $0.50. A break below this level could open the way for a decline to $0.46.
Traders are advised to wait for confirmation or a breakout of the price pattern before making any directional bets.
Disclaimer: This article provides informational content and should not be considered financial advice. The author’s opinions expressed in this article do not necessarily reflect those of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions, and The Crypto Basic is not liable for any financial losses incurred.