Sun, 2/06/2024 – 11:45
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XRP has hit a new threshold, but rather a negative one. Unfortunately for us, XRP has hit one of the lowest volatility levels in 2024. The drop is a negative sign for the asset, but at the same time, it creates some possibilities for someone who has not yet gained exposure to that asset.
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Based on the chart, it appears that XRP has been having difficulty keeping up its upward momentum. Price recently broke below the 50-day, 100-day and 200-day moving averages, among other important moving averages.
This technical breakdown indicates a bearish trend in which the asset is finding it difficult to obtain support. Given that the 200-day moving average frequently serves as a crucial long-term support level, the break below it is the most concerning development. The bearish sentiment is clear as XRP is trading near $0.5146.
A descending triangle pattern, which usually denotes a continuation of the downward trend, is also visible in the recent price action. A drop in trading activity is indicated by volume, which points to a lack of interest among investors. A bearish signal during a downtrend is declining volume, which suggests that sellers are in control.
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The relative strength index or RSI is also currently hovering near the oversold area at 44. This may indicate a possible buying opportunity but at the same time, there’s no fuel for the price to ascend. XRP is not immune to these broad trends as the entire cryptocurrency market is beset by volatility and unpredictability.
Substantial price declines and periods of low volatility have historically been followed by sizable recoveries. This, however, is dependent on a more general market rebound and encouraging XRP-related news.
