- XRP surged by 22.68% over the past seven days as its trading volume soared by 46.55%.
- Despite these recent gains, the overall market trend remained bearish.
Recently, Ripple [XRP] experienced a considerable decline, falling from a high of $0.6480. After the market recovery from the crash and Ripple’s settlement with the SEC, XRP’s prices surged.
However, it has struggled to maintain recent gains, thus continuing with the previous bearish momentum.
Despite XRP’s failure to maintain the gains, analysts are betting on its prospects. Inasmuch, Ledger Man predicted a further surge to a record high, noting that,
“XRP could potentially surge from $1 to $10 or even beyond, driven by the anticipation surrounding the XRP ETF, #Ripple stablecoin, and after paying the $125 million fine.”
However, as it stood, AMBCrypto’s analysis showed that the altcoin was experiencing a strong bearish trend, with recent losses outweighing recent gains.
What XRP’s price charts indicate
As of this writing, XRP was trading at $0.5744 after a 22.68% increase over the last seven days. Equally, the altcoin has surged over the past month by 12.60%.
XRP’s trading volume, in the last 24 hours, has also surged by 46.55% to $1.4 billion.
Source: TradingView
However, despite these gains, the overall market sentiment was bearish. Looking at CMF, it was -0.03 at press time. This suggests there is more selling than buying pressure, creating a bearish sentiment with dominant sellers.
Also, the RVGI was below zero, indicating the prices are closes with higher lows than opening prices. This further proved that selling pressure was dominant and the market is experiencing a strong downward trend.
Source: TradingView
XRP’s DMI and Aroon lines further proved that the downward momentum was strong. The DMI’s positive index at 22.38 was below the negative index at 22.43.
Also, the Aroon Down was at 50%, above the Aroon Up at 14.29%. This showed that XRP was experiencing a sustained downtrend momentum.
Source: Coinglass
Looking further, AMBCrypto’s analysis of Coinglass showed that XRP’s Open Interest had declined from $691 million to $578 million. This suggested that investors were closing positions without opening new ones.
Source: Coinglass
Finally, XRP’s netflow has been negative over the past month. This showed that investors lacked confidence in the altcoin, thus selling their positions as they moved assets to exchanges to sell.
XRP retests key support level
In less than two weeks, XRP has declined from a high of $0.653. The altcoin has failed to maintain the momentum above $0.6 despite the recent gains. At press time, XRP was facing resistance around $0.61.
Realistic or not, here’s XRP market cap in BTC’s terms
If the daily candlestick closes above the $0.580 support level, it can rebound toward the next resistance level, around $0.6.
However, if it fails to hold close above $0.58, it will decline to critical support around $0.55 with a breach below this level further pushing the altcoin to $0.52.
