XRP Price Is On The Rise But Have The Bulls Regained Momentum?

XRP Price has met with selling pressure again after it slipped from the $0.37 price mark. The altcoin has been consolidating over the past one week and over the last 24 hours, it lost 1.2% of its market value. In the last seven days, XRP price depreciated close to 8%.

Confidence from buyers started to fade given how long XRP has traded below its immediate resistance mark. Broader market weakness has also set it given Bitcoin’s move to $20,800 at press time. The technical outlook for Cardano (ADA) has turned bearish which was seen by the number of sellers in the market.

Due to a lack of demand for Cardano, selling strength had taken over the chart. The altcoin was trading quite close to its closest support level. The continued price action could push the XRP price to the next support line. In order for the bulls to be back, it is important that demand for XRP pushes up over the immediate trading sessions.

Cardano Price Analysis: Four-Hour Chart
XRP was priced at $0.34 on the four-hour chart | Source: XRPUSD on TradingView

The altcoin was trading for $0.34 at the time of writing. XRP was trading quite close to the closest support level hence, could soon fail to defend the $0.34 support line. The next support level for the coin stood at $0.31.

XRP’s overhead resistance was at $0.37, the bulls were rejected from that price mark as recently as a few trading sessions ago. If XRP continues to struggle below the $0.37 mark, it could revisit $0.29 over the next trading sessions. The trading volume of XRP shot up on the chart, this indicated that the selling pressure has mounted.

Technical Analysis
XRP noted increased selling pressure on the four-hour chart | Source: XRPUSD on TradingView

The altcoin registered a fall in the buying strength at press time. Broader market weakness could be blamed for the recent fall in XRP price.

The Relative Strength Index was parked under the half-line and that meant selling pressure overpowering buying strength.

XRP price moved below the 20-SMA indicating lesser demand and that sellers were driving the price momentum in the market.

XRP displayed buy signal on the four-hour chart | Source: XRPUSD on TradingView

The recent fall in price hasn’t been reflected in the other technical indicators as seen on the chart. XRP continued to display a buy signal. Moving Average Convergence Divergence indicated the price momentum and if there were chances of a possible reversal.

MACD pictured green signal bars on the half-line which are indicative of a buy signal, however, the signal bars were diminishing in size. This indicated selling strength taking over. The Directional Movement Index read the price momentum and direction.

DMI was still positive as the +DI line was above the -DI line but +DI noted a sharp fall. Average Directional Index (red) was below 20 portraying that the bullish strength has completely lost strength. Buyers and broader market strength could help the coin recover.

Featured image from Pexels, charts from TradingView.com