Bulls XRP is trying to ride the wave along with Bitcoin to reclaim the territory it lost earlier. Bulls are targeting new annual highs.
XRP has been trading in the green zone since the beginning of the year with a strong recovery and bullish sentiment from investors. At press time, XRP is trading at $04.96, representing a gain of 0.78% over the last 24 hours. The token traded 34% below its 2018 high of $3.40.
Can XRP Stop Bull Streak?
XRP started the year with a surge in volatility that characterizes the market and managed to return 11.85% in the last 30 days, pushing its market capitalization to $20.6 billion.
Moreover, the trading volume experienced by XRP in recent days and weeks and the favorable trend of XRP indicate that market makers are participating in the project. According to a recent report from NewsBTC, you can assume that XRP whales are once again buying and hoarding the token.
This increase in activity on Ledger’s original XRP token shows that more wallets are being created with large amounts of XRP. While the perspective of many investors may be bullish, we can also find traces that lead us to consider a bearish scenario.
XRP can break the trend line touching three key levels and continue the bullish trend to find a position in the challenge below represented by $0.5.
XRP Heaven or Hell Level
Despite breaching the target zone earlier, there are strong signals that XRP’s bullish days may be numbered. The current market scenario, where several tokens are consolidating or forming a price range, shows that the price action can explode in any direction.
As with any important moment in the market, this leaves XRP with two scenarios, which are described in the chart below:
XRP was able to break the trend line that touched three key levels and continue the bullish momentum to find a position in the challenge below represented by $0.5.
In the daily chart above, XRP has formed a bearish divergence, which may represent a significant pullback for the token. The Relative Strength Index (RSI) is sitting at 42.51, approaching oversold territory, but for XRP, there needs to be a correction in the daily time frame before price action can follow the RSI indicator.
If this is confirmed, XRP could significantly retreat to the $0.36 support level. If the bulls cannot stop this hypothetical scenario, the token may also lose territory and test the level of $0.288.
In short, XRP should find momentum before a significant correction of the token and cryptocurrency market, with Bitcoin (BTC) and Ethereum (ETH) forming a bearish divergence on the daily chart.
Confirmation of the bearish divergence for XRP will end when the price action drops below $0.379. In that case, the bear may be in a perfect scenario to ride the mountain to visit the lower price. If XRP’s decline continues, it could retest $0.33, the main support line below for the token.