Despite a recent minor price surge, the bullish momentum surrounding crypto assets has subsided a bit. Last night resulted in a rude wake-up call with all assets dropping hard and fast. They have yet to recover, yet some expect the XRP price to touch $0.5 again reasonably soon.
Will The XRP Price Move Up?
It has been an exciting 24 hours. Rumors regarding a Russian crypto exchange being shut down sparked some market fear. However, there was a coinciding collapse in other markets, including significant stocks. There’s still substantial market fear and uncertainty in the current financial landscape. Any optimism is often kept in check quickly, and no major market moves will materialize. Even so, Bitcoin remains above $20,700 despite facing a significant setback a few hours ago.
One asset that seems more resilient – besides stablecoins – is XRP. The native asset of XRP notes a modest 0.9% 24-hour loss. That is far less than Bitcoin (-2.3%), Ethereum (-3.4%), and Binance Coin (-3.2%). The XRP price is relatively stable and less influenced by market conditions. On the other hand, it only gained 2.4% this week, whereas Bitcoin went up by 15.5%. It is a double-edged blade when modest changes become part of the equation.
As such, it becomes essential to look at the technical indicators. Those can help determine where the XRP price may head in the coming hours and days. Everything seems neutral – the RSI, Stochastic, etc., whereas the Momentum and MACD would indicate XRP is a potential “buy”. The moving averages would incline to agree, although the long-term EMA and SMA flipped to “sell”. That may indicate a brief market correction over the weekend, although it shouldn’t be too steep.
As most technical indicators remain neutral or signal “buy”, the XRP price should be able to maintain itself above $0.38. However, there may not be much upward market momentum. Unlike other currencies, a bullish or bearish BTC price won’t make much difference for this asset. Therefore, it remains unclear what – if anything – can move this market over the coming weeks.
An XRP Bounce Isn’t Impossible
Despite the lack of excitement, one shouldn’t discount the possibility of an XRP price bounce. Trader RizeSenpai explains that XRP is at a bull flag’s demand line. That often signifies a momentum shift will occur soon. In this case, that could yield a push to $0.42 and pave the way for a steep run to roughly $0.5. However, there do not appear to be any significant resistance levels past $0.42, so anything is possible if the bulls take control of the market.
Returning to $0.5 would be a positive sign for Ripple’s asset. Although the parent company is very successful in its vertical, that rarely warrants bullish XRP momentum. The asset isn’t like traditional alternative cryptocurrencies and has real-world implications in the financial sector. However, it also has a massive supply, and traders have more “volatile” options to profit from.
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