Ripple token showed massive gains in April
The XRP price has seen renewed bullish momentum since the beginning of the month. When compared to many major currencies in the crypto market, the rise in XRP has been quite unparalleled, with the cryptocurrency having managed to raise its price on the charts by more than 266 percent since April 5.
At the time of writing, XRP was trading at $ 1.75 with a market capitalization of over $ 80 billion, making it the fourth largest cryptocurrency on the market. In the past 7 days, a 93 percent increase in price has been witnessed by the XRP market. Interestingly, despite the bullish momentum of the previous week, XRP noticed a slight price correction at the time of publication.
XRP daily chart
Source: XRP / USD, TradingView
The price of XRP has been rising for more than a week and it seems that it has finally met a suitably strong resistance level. In the past three days, the currency has made several attempts to break through the $ 2 price level, having failed to do so at all times. While this is not a bearish signal for the currency’s price, it does show that the bullish momentum in the market may be starting to see a decline.
In such a scenario, a price correction can be expected and this can push the price to its immediate support by $ 1.31. This price range was last witnessed on April 12 and helped to push the price back up. However, if that support fails, XRP may see much of its hard work undone as it could fall to the $ 0.85 range. However, given the current market conditions, it is difficult to say whether this price drop will occur in the next week.
If the first support is violated within the next 48 hours, traders can benefit from short positions and make a profit close to the $ 0.8 range of XRP.
The XRP saw a tremendous increase in bullish momentum in just over a week. However, a slight correction may be underway as the trend may change soon. Interestingly, the MACD indicator continued to maintain its bullish cross, but the RSI was starting to move out of the overbought zone and could move into the neutral zone next week. This could signal a decline in bullish momentum.
The XRP may make another attempt to try to break the current resistance level. If such an attempt fails, you will soon be able to turn to your immediate support. For traders, if that level fails, opening short positions in the currency can be useful.