The XRP Price Slipped Below Rising Channel; Will Bears Dominate?

• According to the market capitalization, Ripple crypto ranks 7th in the cryptocurrency market.
• XRP price traded below the key moving average indicates bearish momentum.

The XRP crypto price has been rising through an inclining channel in a broader time frame. At the time of writing, it has triggered a breakdown from the channel and started consolidation. The Ripple price has been struggling below the key moving average. The price has failed to sustain the 20-day moving average thrice a month, showing the sellers’ grip.

Since March, the Ripple price has remained bearish and has been unable to reach the last swing highs. Since mid-April, the XRP crypto price chart structure shows that the price has defended the last swing high, demonstrating the bulls’ engagement.

The XRP traded at $0.52 at press time, 1.49% higher than in the past 24 hours. The market capitalization is $28.91 Billion, and the 24-hour trading volume is $1.10 Billion. The circulating supply is 55,288,951,055 XRP, and the maximum supply is 100,000,000,000 XRP.

Federal Bank Collaboration with Ripple for $XRP Payment

In a groundbreaking move, the most important U.S. federal financial institution has introduced a strategic collaboration with Ripple, a main blockchain-primarily based totally fee answers provider. The joint attempt aims to revolutionize cross-border bills by leveraging Ripple`s local virtual asset, XRP.

Price vs Daily Active Addresses Analysis

According to the graph, the daily active addresses have slowly decreased since April, and the price has also decreased. If the daily active addresses keep declining, the buyers will find it difficult to bounce back.

XRP Price Prediction Over Daily Timeframe

The XRP price has formed a symmetrical triangle pattern in a daily time frame and is struggling below the 20-day exponential moving average. Buying momentum can be expected if the price surpasses the 20-day EMA and triggers a breakout from the triangle. 

Suppose the daily active addresses increase and the trading volume also surges after the breakout; buyers may show interest. If the chart structure attracts buyers, then the price may extend to the $1 mark.

On the other hand, if the XRP price triggers a breakdown, sellers may dominate, and a bearish momentum for the long term can be expected.

RSI is 49, recovering from the overbought zone and heading for the overbought zone. 

Conclusion

Based on the analysis, the XRP price is currently facing some challenges, with the potential for bearish momentum to dominate. The daily active addresses have been decreasing, and if this trend continues, it may be difficult for buyers to bounce back. However, there is a possibility of buying momentum if the price surpasses the 20-day EMA and triggers a breakout from the symmetrical triangle pattern. Monitoring the daily active addresses and trading volume will be important to gauge buyer interest. If the price manages to attract buyers, it may extend to the $1 mark. On the other hand, if a breakdown occurs, sellers may dominate, leading to long-term bearish momentum.

Technical Levels

The chart structure suggests that the XRP crypto price may face resistance from the $0.55 and $0.65 levels. The support levels would be $0.48 and $0.42. 

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.

Rajat Arya

Rajat is an MBA graduate specialized in finance who is a motivated self-starter, highly organized, and holds a good flair for understanding financial markets. His interest in economics and finance draws his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. His primary focus is on cryptocurrency price analysis and industry news coverage.