XRP short-term price analysis: 07 July

The fourth-largest cryptocurrency in the market, XRP is not a stranger to the volatility in the market. Even though the current state of the cryptocurrency market has been consolidated, XRP has been witnessing this stagnation for a long time now. Despite the sudden drop in XRP’s price, like that noted on 9 June, the value of the digital asset bounced back immediately, however, remained in a lower range of $0.20 to $0.19. However, consistent sell-offs have pushed the cryptocurrency’s value to $0.1846, at press time.

Source: XRP/USD on TradingView

As per the 4-hour chart of XRP, the price broke out of an ascending triangle pattern on 6 July.The price movement allowed for a horizontal line to be drawn along the swing highs at $0.1785, while the swing lows gave rise to a rising trendline. This continuation pattern broke upwards causing the price of XRP to jump from $0.1759 to $0.1878. The price moved a little above this price point to $0.1896, however, retracted almost immediately.

The immediate resistance for the coin was noted at $0.1901 as the value collapsed and plunged past the support point at $0.1864. According to Fib Retracement, the next support point for XRP’s price was at $0.1803, the penultimate aid for the price. The Relative Strength Index [RSI] also highlighted the sudden surge in its chart. The RSI entered the overbought zone as the price hit higher, however, at press time, was still closer to the overbought zone but was pushing towards equilibrium.

Apart from the market volatility, the XRP correlation with Bitcoin was also high.

Source: CoinMetrics

According to the chart above, the XRP-BTC correlation had remained closed to 0.86 from April to June. However, as July began, the correlation has been gaining more strength. There has been an upwards spike observed towards the end of the chart and as per the data, the correlation between the two assets has reached 0.87, which was last observed on in April. Given the circumstance, BTC’s spike could push the price of XRP above $0.1864, and if it manages to breach this point, it may reach $0.1901. However, if the coin plunges, it may dip to $0.1803.