Despite being one of the largest cryptocurrencies in terms of market capitalization, the trading price of XRP is only a fraction of its previous all-time high. Over the past 12 months, XRP has only grown by a little over 1%, significantly lagging behind the overall market.
Despite the recent buzz surrounding Bitcoin wallet movements related to Mt Gox, the overall market remains complacent, with XRP being particularly affected. It is worth noting that after a surge earlier this morning, XRP has retraced and experienced a slight increase of 0.45% in the past 24 hours.
Although XRP has seen some upward movement in the past week, with a 1.0% increase, it has yet to recover from the 6.85% loss in the past month. Looking further, XRP seems to have only regressed this year, falling by 1.58%, while other leading cryptocurrencies have been flourishing.
Nevertheless, traders still seem interested in XRP, as its trading volume has increased by $102.7 million in the past 24 hours, reaching $873.31 million.
XRP price fails to break through key support level – Is XRP heading for a collapse? Despite the sudden drop after today’s positive momentum, various indicators paint a different picture.
After failing to retest the key resistance level (white) of $0.4889, XRP price seems to have experienced a pullback. Over the past two weeks, this resistance level, along with the support level (white) of $0.4659, has kept XRP in a consolidation phase.
The next crucial test for XRP will be the support level (dark green) of $0.4806. This will indicate whether the correction for the altcoin has already ended or if there is further downside potential in the future.
The relative strength index (RSI) (purple) highlights this “correction,” dropping from 85 to 40 in the past 5 hours. This represents a shift from overbought to a neutral state as buying pressure weakens and price volatility cools down.
Although an RSI of 40 does indicate bearishness, a broader trend will provide insights into XRP’s next possible direction.
Most importantly, the 30-day moving average (DMA) (yellow) is currently trending upward, while the 200DMA has shown encouraging signs of an upward trend for the first time in over 10 days.
This indicates that despite the adjustment, XRP still exhibits strong short-term momentum. Furthermore, the overall long-term trend is improving, further bolstering positive prospects for the asset.
Despite these factors, given XRP’s disappointing price performance over the past year, any upside potential may be insignificant. Therefore, it is understandable that traders are seeking more hopeful opportunities.
The year-to-date (YTD) performance is even more concerning. On January 1, 2024, XRP was priced at $0.57. Today, XRP is priced at $0.48, meaning it has dropped by 15% in the first six months of 2024.
The current price may present a wise entry point. XRP’s 52-week high is $0.88, indicating a potential upside of 100% based on the current pricing level.
This situation calls for positive sentiment to return to the cryptocurrency market, which has been ranging for several months.
