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XRP has been under a bearish trend for the past 24 hours, oscillating around $0.5747 with a daily loss of 0.55%. Moderate volatility characterized the day of the cryptocurrency, first on an incline, then marking a steep drop during the mid-day hours.
Currently, market capitalization is slightly lower at around $32.29 billion, proving it's holding well after losing some ground in the last hour. The pricing chart specifies a strong early tendency to rise, whereby XRP first tested levels above $0.578 and went into the hands of strong selling interest.
As a result, a sharp pullback followed, sending prices as low as $0.565. While there was some recovery in the latter part of the day, prices did not pick up any momentum, and the stock entered a phase of minor fluctuations.
XRP, for the most part, has shown an extended bearish trend within the cryptocurrency space. Price faced a psychological $0.60 resistance but continued below it, translating to a general bearish sentiment that has been felt across the market over the past couple of days.
This would also be confirmed by the overnight formation of an evening star pattern, which is usually indicative of a reversal from an uptrend to a downtrend. The drop has been confirmed by the 31.51% drop in the 24-hour trading volume of XRP from the previous close.
This decrease in trading activity is a sign that market participants are still cautious, possibly before better clarity sets in for some big moves.
On the technical front, XRP has several challenges ahead. Although the 50-day EMA supports the price recovery, more than a recent golden crossover with the 200-day EMA can help counter the bearish pressure. Subsequently, the support areas to watch are $0.55167, $0.52801, and $0.49873. However, a deeper correction is possible if XRP/USD fails to hold above these levels.
Resistance and support dictate price action at the moment, but a rise in the price above these supports can still potentially lead to a bullish trend; however, it will depend on general market conditions and investor sentiment.
There appears to be some underlying strength for XRP after this bearish trend. Recent data shows that whales have been buying XRP, with purchases of nearly 50 million tokens valued at around $30 million made in the last 24 hours. Such accumulation really proves that some investors are still optimistic about the long-term potential of XRP despite market volatility.
Additionally, XRP is trading inside a multi-year symmetrical triangle, which tends to have bullish implications if there is a breakout. If the existing resistance levels are toppled, this, coupled with growing buying pressure and better market sentiment, would combine to perfection.
XRP is relatively under bearish pressure in the short run, but several factors could bring it back from the brink. The SEC vs Ripple lawsuit resolution has also cleared the regulatory uncertainty and may now catalyze renewed interest in XRP. Furthermore, a breakout from this symmetrical triangle formation should trigger a huge rally that could take prices to $3 or even higher in the months ahead.
