XRP has gained over 68% in market value in the past two weeks.
Even though prices could advance towards $1, a correction appears imminent.
A spike in selling pressure could push XRP to $0.85 or even $0.75.
Share this article
Ripple has seen almost 68% gains over the last two weeks; still, the cross-border remittance token could be bound for a retracement before its uptrend resumes.
XRP Approaches Overbought Territory
XRP appears to be gearing for a correction after incurring significant gains.
The sixth-largest cryptocurrency by market capitalization has been on a roll lately. It was able to surge by nearly 68% in the last two weeks after reaching a local bottom at $0.55. Given the significance of the bullish impulse, XRP could soon be bound for a brief retracement.
The Tom DeMark (TD) Sequential indicator could soon present a sell signal on XRP’s daily chart. The bearish formation would likely develop as a green 9 candlestick, which is indicative of a one-to-four daily candlesticks correction.
Based on the moving averages, it appears that XRP could run towards the 200-day moving average at $1 before its uptrend reaches exhaustion. A spike in profit-taking could then push prices towards the 100- or 50-day moving average. These crucial support levels sit at $0.85 and $0.75, respectively.
XRP’s network growth further validates the pessimistic thesis. Data from Santiment shows that the recent upward price action has not been supported by a spike in the number of new daily addresses on the network. This sort of bearish divergence between prices and on-chain activity could result in a steep pullback as forecasted by the TD setup.
Although the technicals and the fundamentals anticipate a pullback in the near term, investors should pay close attention to the $1 resistance level. A sustained daily candlestick close above such a significant interest zone could have the strength to invalidate the bearish outlook.
Slicing through the $1 barrier might trigger FOMO among market participants, increasing the upward pressure behind XRP for an upswing towards $1.24.
Disclosure: At the time of writing, this author owned BTC and ETH.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Ripple Chair Proposes Plan to Move Bitcoin Away From Proof-of-Work
Ripple executive chairman and co-founder Chris Larsen has proposed a strategy to incentivize Bitcoin miners to move away from the energy-intensive Proof-of-Work consensus mechanism. Ripple’s Chris Larsen Wants Bitcoin Off…
Ripple Proposes Its Vision for Cryptocurrency Regulation
Ripple has released proposed guidelines for cryptocurrency regulation in the U.S. The proposal is introduced amid Ripple’s own ongoing battle with the SEC. Ripple Releases Suggestions for Crypto Regulation Ripple,…
What Is Ripple? Introduction to XRP and Ripple Labs
What Is Ripple? Ripple Labs is a blockchain business founded in 2012, and is one of the oldest cryptocurrency-based technology companies. It developed the Ripple payment protocol, a transaction network…
NFT Express: Your on-ramp to the world of NFTs
At Tatum, we’ve already made it super easy to create your own NFTs on multiple blockchains without having to learn Solidity or create your own smart contracts. Anyone can deploy…