XRP, the native token of XRP Ledger, has recently faced resistance during its latest rally. However, market analysts believe that the bullish trend remains intact due to XRP consistently producing higher lows. Renowned crypto analyst Predycto has provided an optimistic perspective, assuring investors that the current dip does not warrant concern.
XRP has decreased more than 10% in 2 days – should you worry?
The answer is…not yet!
XRP is still producing higher lows, meaning the bullish trend is still intact.
One thing that's worrying is that volume has been decreasing since last week!
This means that less people are… pic.twitter.com/cg4z7xjxIw
— Predycto (@predycto) July 22, 2023
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Predycto’s analysis reveals a favorable trend observed on the four-hour chart of XRP. The analyst highlights that XRP has been registering “higher lows,” indicating underlying strength in the market.
This phenomenon occurs when the lowest price of a given period surpasses the lowest point of the previous period. According to Predycto, this pattern suggests that buyers are continuously supporting XRP at increasingly higher price levels.
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XRP’s Recent Performance and Volume Decline
XRP experienced a drop of 22% from its high of $0.9380 on July 13, which raised concerns among investors. However, the cryptocurrency quickly recovered from the dip and has been observing lows higher than those seen in previous 4-hour candles. The latest low stands at $0.7223, representing an 8% increase from its lowest point on July 14.
While the higher lows provide optimism, Predycto highlights the decline in XRP’s trading volume, which demands careful attention. The analyst notes that XRP’s trading volume has decreased since the previous week.
Typically, significant price movements accompanied by high trading volume validate the market’s direction and indicate strong investor interest. Conversely, decreased trading volume during price fluctuations may suggest reduced enthusiasm.
XRP’s 24-hour trade volume reached a 23-month peak of $10.4 billion on July 13 but has seen intermittent declines since then. Despite a few occasional surges, the overall trend has been a decline in trading volume.
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Analyst’s Confidence and Caution
Predycto acknowledges the concerns surrounding the declining trade volume and the corresponding XRP price drop. However, the analyst remains confident in the cryptocurrency’s bullish trend.
As long as XRP remains above the critical level of $0.70, there is no immediate cause for panic. Should XRP drop below this level, a retracement could occur with the price revisiting the support level at $0.60.
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