XRP has been massively rotating in recent times, up by 2.39% in the last 24 hours. The cryptocurrency currently stands at approximately $2.87, and this comes amidst the volatile market. The daily trading volume has exceeded 3.52 billion, and the market value of XRP is $170.76 billion. ‘
Source: CoinMarketCap
The recent history of XRP Ray lies in a symmetrical triangle, a pattern that tends to herald a breakout following the occurrence of a consolidation. The support level is built at 2.76, whereas the resistance is at $2.95. It has been a crucial time for the traders, as the price level has been forming in this range. Any breakout above $2.95 would begin serious upwards movement.
Also Read: XRP Shows Strength Near $3 Resistance After Whale Long Trade Entry
Another important factor is the intersection of the 50-EMA and 200-EMA ($2.82 and $2.88, respectively). Since the beginning of September, XRP has been making higher lows, which is a positive indicator of increasing buying pressure. Yet the downward movement trendline beginning in late August puts a limit on the price, an important resistance point to overcome.
The momentum is showing strength. The Relative Strength Index (RSI) stands at 58, which still increases slightly, but the index has yet to attain overbought status. This is an indicator of a possible additional bullish movement. Small-bodied indecisive moves are reflected in recent candles and then aggressive bullish closes.
Source: TradingView
In the case of traders, the most important levels to monitor are evident. An upsurge above $2.88 (the 200-EMA) would most likely prompt a surge towards $2.95 and possibly to $3.04. Conversely, a downward movement below $2.76 would put the token under bearish influence, resulting in support at $2.70 and $2.63. These are crucial areas; they need to establish the next big step by cryptocurrency.
Analyst Dark Defender has indicated that XRP w ould retest the $3 resistance level. This mark has been an important obstacle of the coin before. RSI indicators reveal further gains on the bullish side, which further lends to the opinion that the XRP is likely to go beyond this barrier in the nearest future. In the meantime, a critical support level is $2.85.
Source: X
XRP has been on accumulation mode; as per the data presented, the net position change is the highest in about the last 2 years. Over the last month alone, 1.7 million tokens have been purchased by investors, which is an indicator of a rising investor confidence in the coin.
Source: Glassnode
In a bigger picture, the Network Value to Transactions (NVT) ratio is at the highest point after two months. It implies that the network value of the token is increasing at a faster rate than its transactions, which could be a hint at overvaluation. In the past, these spikes have tended to be followed by a withdrawal of momentum in accumulation.
Source: Glassnode
Sentiment on cryptocurrency is still bullish in spite of the large NVT ratio. The major candidate is a strong accumulation trend, which is accompanied by a positive series of technical indicators and indicates that the token may soon reach the main resistance. But it is prudent to wait because the market is in a possible breakout, and the coin is likely to gain new highs within the next few weeks.
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