XRP has continued to trade below a key price point of $0.4623, according to a recent analysis by Dark Defender (@DefendDark), a prominent crypto analyst. This price stagnation comes after two consecutive four-hour candles closed below that level.
The analysis highlights the significance of trading volume in understanding market sentiment. The current shallow volume levels for XRP indicate a lack of significant buying or selling pressure. This suggests that market participants are currently hesitant to take decisive action, potentially waiting for a clearer price direction before entering the market.
Read Also: XRP Hits Correction Target Zone, Analyst Foresees $3.47 Price. Here’s His Chart
Oversold RSI Hints at Potential Downward Trend
The analysis also mentions the oversold territory on the Relative Strength Index (RSI) indicator for XRP. The RSI is a technical indicator commonly used to gauge an asset’s price momentum. An oversold RSI reading suggests that the asset may be due for a price correction upwards.
However, in the context of XRP’s current price stagnation and low volume, Dark Defender believes the oversold RSI could also indicate a potential downward trend if the price breaks below the $0.4623 support level.
XRP is currently trading at $0.42, down 4.04% over the past 24 hours. However, many analysts are bullish on the digital asset, and a swift recovery might save XRP from a continued downtrend, as it has fallen below the $0.4623 support highlighted by Dark Defender.
Previous Support at $0.3917 Could Become a Resistance
The analyst further explores the possibility of XRP reaching its previous support level of $0.3917 if the downturn continues. This level previously acted as a floor for XRP’s price, but if the price stays below $0.4623 and continues the downtrend, $0.3917 could become a resistance level once XRP drops below it.
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Read Also: Top Analyst Spots Lowest Monthly RSI in XRP History. Here’s What It Means
XRP’s current price stagnation below $0.4623, coupled with shallow volume and an oversold RSI, presents a period of uncertainty for the token. While the oversold RSI might suggest a potential price increase, the lack of buying pressure and the possibility of breaking below the support level raise concerns about a continued downtrend.
However, Dark Defender has promised to keep the community posted, and investors need to watch XRP carefully while making investment decisions. Despite the bearish outlook, a prominent crypto figure recently shared multiple factors that could aid XRP’s recovery, and potentially send it to $5.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Times Tabloid is not responsible for any financial losses.
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