CoinDesk Report:
Despite being one of the largest cryptocurrencies by market cap, XRP’s trading price remains a fraction of its previous all-time high.
Over the past 12 months, XRP has grown by just over 1%, significantly lagging behind the broader market.
While recent movements of Bitcoin wallets linked to Mt. Gox have stirred up excitement, the overall market remains complacent, with XRP suffering particularly severe price setbacks.
Following a surge earlier this morning, XRP retraced and saw a modest 0.45% increase in the past 24 hours.
Despite some upward movement in the past week, with a 1.0% increase, XRP has yet to recover from a 6.85% loss over the past month.
Looking further, XRP appears to be regressing this year, down 1.58%, while other leading cryptocurrencies continue to thrive.
Nevertheless, traders seem to maintain interest in XRP. Its trading volume increased by $10.27 million in the past 24 hours, reaching $873.31 million.
XRP’s failure to break through key support levels raises concerns – is XRP heading towards a collapse?
Although today’s sudden downturn after a promising start could be attributed to a collapse, various indicators paint a different picture.
After failing to retest the crucial resistance level (white) at $0.4889, XRP’s price seems to have undergone a correction. Over the past two weeks, this resistance level, along with the $0.4659 support level (white), has kept XRP in a consolidation phase.
The next critical test for XRP will be the $0.4806 support level (deep green). This will indicate whether the correction in the altcoin has ended or if there is further downside potential ahead.
The Relative Strength Index (RSI) (purple) highlights this “correction,” dropping from 85 to 40 in the past 5 hours. As buying pressure eases and price volatility cools, this shift indicates a move from overbought to neutral territory.
While an RSI of 40 does suggest bearish sentiment, broader trends will provide insights into where XRP may head next.
Most importantly, the 30-day Moving Average (DMA) (yellow) is currently trending upwards, while the 200DMA has shown its first promising uptrend in over 10 days.
This suggests that despite adjustments, XRP is demonstrating strong short-term momentum. Furthermore, improvements in the overall long-term trend enhance positive prospects for the asset.
However, given XRP’s disappointing price performance over the past year, any upside potential may be minimal. Hence, traders seeking more hopeful opportunities is understandable.
Year-to-date (YTD) performance is even more concerning. On January 1, 2024, XRP was priced at $0.57, whereas today it stands at $0.48, marking a 15% decline in the first six months of 2024.
The current price may present a prudent entry point. XRP’s 52-week high is $0.88, indicating a 100% upside based on current pricing levels.
This scenario calls for a return of positive sentiment to the cryptocurrency market, which has been range-bound for several months.