After a sharp increase in value, XRP overcame several major obstacles and improved its prospects. But when the price hit the major resistance level of $0.5387 on April 19th, it lost momentum and fell.
XRP has seen a dramatic fall in value, giving up its previous gains. Many investors are now unsure when the dynamics will change and what the possible causes of the fall in value are.
Will XRP Recover From The Dip?
XRP is one of the most closely monitored digital assets due to Ripple’s ongoing case with the United States Securities and Exchange Commission (SEC). The token has seen significant volatility and swings in the cryptocurrency market year-to-date.
Recently, the token has experienced a fall in value, erasing its previous gains and leaving investors uncertain about the future of the asset. The current XRP price outlook is bearish, with a Fear and Greed Index score 29
This level indicates that the bearish trend will continue as the price is in the zone where investors and traders are afraid to enter the market. Investor sentiment and market structure has led to increased selling momentum and downward movement.
XRP is down 1% on the l XRPUSDT chart on Tradingview.com
The current price of XRP is at $0.4557 today, down 0.89% in 24 hours. Its market cap of $23 billion shows a 0.88% drop, while its 24-hour trading volume of $890 million represents a 1.28% drop.
What’s next for the token?
At the time of writing, XRP price is heading towards the critical support level at $0.4405 on strong bearish momentum.
If XRP bulls scale back their buying momentum, the price could soon lose the immediate support at $0.4405 and open the drains for more declines. Conversely, XRP’s price could recapture its uptrend if offbeat investors jump in at current levels.
A surge in buying pressure from the current $0.4602 could see the token break the immediate psychological resistance around $0.4869. It could also face next resistance at $0.5387 if the bulls mount strong pressure. But a decisive flip of this resistance into support would invalidate the bearish thesis.
XRP price has been falling since day 50 simple moving average (SMA), suggesting sellers continue to aggressively defend the level. The bears will attempt to sink the price to the key $0.4405 support zone.
If it trades below the 200-day SMA, it would indicate long-term bearish momentum. However, buyers are expected to defend the zone as the XRP/USD pair could continue lower if they don’t hold their position.
The Relative Strength Index (RSI) is attempting to form a bearish divergence, which suggests that the bears might hold their grip. The RSI value of 38 shows that XRP is close to the oversold zone.
The MACD The line is below the signal line, indicating a potential selling opportunity. The histogram is also below the zero line and is increasing in size; this points to possible bearish momentum.
Featured image from Pixabay and chart from Tradingview
