XRP faces retracement under $0.20, but another rise won’t be surprising
As XRP closes shop just under a double-digit billion-dollar market cap, the market is opening up to interesting price possibilities over the course of the next week. After undergoing a massive surge, XRP, at the time of writing, was nursing a minor fall of 0.71 percent over the last 24-hours, with a valuation of $0.218.
XRP 1-day chart
Since the crash on 12 March, XRP has been steadily rising on the charts, navigating within the ascending channel pattern. With higher highs formed at $0.161, $0.186, $0.197, and $0.229, the pattern hadn’t been busted, at the time of writing. With the ascending channel, the possibility of a bearish pullback is mostly going to take place over the next couple of weeks as the token is primed for a correction phase after the recent pump.
If the selling pressure is high, a retracement all the way down to $0.197 is likely since the trading volume at that particular level has been significant since last December. A more measured pullback may witness the token bounce back from $0.211. However, XRP would probably rally soon enough after a healthy correction to breach resistance at $0.231 by the 3rd week of May.
The possibility of another quick rally?
However, if the analysis is done without highlighting the practical scenario, there is a fair chance XRP might breach the pattern over the next week. It is important to note that the market is extremely bullish at the moment, and unstable trading is taking place to a certain degree.
The fact that the trading volume backing the price hike at the moment is more than the volume during the May 2019 rally might indicate that a strong bottom is being formed at $0.211 support. A higher trading volume with higher price action is a sign of strong stability for the price. Hence, it would not be surprising to see XRP breach $0.231, and probably $0.246, over the next week.
Now, coming back to the market indicators, it is also likely that XRP’s inability to go above the 200-MA (orange line) in the last rally could exhaust the buying pressure. In spite of the rally, the moving average continued to remain a strong resistance.
Further, the RSI also exhibited that since September, wheneverXRP has gone above the 60.00 line mark, it hasn’t been able to bounce back from this range during a pullback. Therefore, in spite of the continuing rally, a bearish outcome is likely going to take place for the 3rd largest cryptocurrency in the near-term.