Despite the bearish trend prevailing in the market last week, the Ripple (XRP) bulls showed their resilience by locking in gains. XRP has emerged among the top 20 crypto assets, recording an impressive weekly gain of over 8%. Although the daily chart showed a relatively modest increase of more than 1%, it was enough to sustain the bullish momentum.
The technical outlook for XRP revealed an improvement in buying strength, as demand and accumulation indicators reflect a rebound on the daily chart.
However, the price action of the major altcoins remained uncertain as Bitcoin fell back to the $26,000 price level. The future path of XRP will depend on the performance of BTC in the upcoming trading sessions.
Buyers will gain more traction if BTC shows improvement, driving demand for XRP. Conversely, if demand fails to rise significantly, it may hinder XRP price growth. Another positive indicator is the recovery in the market value, which indicates an increase in demand and purchasing power.
XRP Price Analysis: 1-day chart
As of the time of writing, Ripple (XRP) is trading at $0.46. The altcoin showed a significant breakout by clearing the crucial $0.44 resistance level, which increased demand for the asset.
Going forward, the next hurdle for XRP lies at the $0.48 overhead resistance, which is expected to pose a tough challenge to the coin. However, if the altcoin can overcome this resistance level, it is likely to target the $0.50 mark.
Conversely, a decline from the current price level will take XRP to $0.44, possibly even below the $0.42 price tag. The recent session saw positive momentum for XRP, as evidenced by the green volume bar of the altcoin being traded.
Technical Analysis
When the price broke above the $0.44 level, buyers quickly entered the market, which showed an increase in the demand for the altcoin. This increased interest is supported by the Relative Strength Index (RSI), which is currently positioning itself above the half-line, just below the 60 mark.
This indicates that the buying force is outweighing the selling force at the moment, confirming the positive sentiment surrounding the altcoin.
Moreover, the price of the asset rose above the 20 simple moving average (SMA) line, which indicated that buyers were driving the price momentum in the market.
The increase in demand for the altcoin is reflected in the buy signals observed on the intraday chart of XRP. The Awesome Oscillator determines the direction and momentum of the price. It generated small green signals closely related to buy altcoin signals.
This indicates positive price action for the currency, which highlights the potential for further upward movement. In addition, the Bollinger Bands, which measure price fluctuations and potential volatility, maintain a wide range. However, the parallel alignment of the bands suggests that the altcoin may trade within a relatively narrow range in the upcoming trading sessions.
Featured image from iStock, charts from TradingView.com
