Mon, 1/07/2024 – 10:42
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XRP could finally be forming a pattern that will hint at the end of the prolonged downtrend we have been witnessing since March. However, it is only a sign of selling pressure winding down but not necessarily hinting at a prolonged reversal.
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A possible cup bottom pattern, which is usually a bullish indication that an asset may be getting ready for a move higher is visible on the price chart of XRP. The pattern’s rounded bottom signifies that buyers are beginning to take the initiative, and selling pressure is beginning to lessen.
According to the way the price is moving right now, XRP appears to be stabilizing at $0.47, which may provide support for future increases. Technical indicators lend credence to the possibility of a reversal. As XRP tests its 50-day EMA at the moment, a successful break above it could open the door for a move toward the next resistance level, which is the 100-day EMA, located around $0.50.
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If XRP can maintain its upward momentum, the longer-term target is the 200-day EMA, which is currently at $0.53. XRP is in the neutral zone and has room to rise before reaching overbought conditions, according to the RSI, which is 42. This shows that without a lot of selling pressure, buyers may still be able to drive the price higher.
Volume analysis indicates a decline in sales activity, which is good news for XRP. On down days, the volume declines suggest that the bears are becoming weaker and that the bulls may be about to take control. XRP must, however, see a rise in buying volume in order to confirm a breakout and establish a long-term uptrend.
