When Will XRP’s Uptrend Begin?

  • 09/28/2021
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XRP is yet to break out from a bullish pattern. After failing to secure a sustainable launching pad for recovery, the crypto-asset kicked off consolidation. It managed to reverse the weekly losses but was still facing selling at higher levels. At a global market cap of $1.89 trillion and dip in volatility, prospects of a rally do not appear in near future. However, the correction could be over soon.

Over the past 24-hours, XRP plunged by 3.53% which pushed the price to $0.934. At the time of writing, the crypto-asset recorded a market cap of $43.8 billion and a 24-hour trading volume of $2.86 billion.

XRP Daily Price Chart:

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XRP formed a bullish falling wedge pattern on the daily chart as the price gradually declined after establishing a local top in the first week of September. The low volatility further hindered attempts to regain control. However, the above-mentioned pattern formation could, in fact, bring the much-needed recovery for its price.

The moving averages also resisted uptrend. While the 50 DMA [Pink] moved over the XRP price candles on the 18th of this month, a week later, the 200 DMA [Yellow] followed suit. The 100 DMA [Yellow], on the other hand, was below the candlestick arrangement.

XRO2

The formation of a red closing line on the Awesome Oscillator [AO] indicating a switch to bearish momentum after brief relief. Recovery attempts failed as Chaikin Money Flow [CMF] fell below the zero-line following an increased outflow of capital from the coin market. The Relative Strength Index [RSI], however, recovered even as it was hovering below the 50-median line depicting sellers dominance in the market but also bulls trying to break the correction.

XRP first needs to steer clear of the support-turned-resistance of $1.12 to target $1.8 and $1.58 levels. If the 100 DMA fails to defend the $0.88 zone, the crypto-asset could retrace its steps to other support levels of $0.78 and $0.54 respectively.

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