XRP token runs on a digital payment platform called RippleNet. In addition, RippleNet uses a top distributed ledger database, which is called the XRP ledger. Besides, XRP is a competition to existing payment platforms like SWIFT. XRP can either be stored on an exchange as well as cold and hot wallets. Let us look at the technical analysis of XRP.
On September 09, 2021, XRP opened at $1.09. On September 15, 2021, XRP closed at $1.12. Thus, in the past week, the XRP price has increased by approximately 2.75%. Further, in the last 24 hours, XRP has traded between $1.08-$1.13.
XRP has been trading in a rectangular range since mid-August. A breakout on either side is important to predict the future trend of the price. Currently, it is retesting its support zone. We can expect a bounce from this range. Let us see what the indicators are suggesting:
On assumption, that the SEC and XRP case will go in for the settlement, buyers' interest was seen in the token. Moreover, a tweet from the CEO of Ripple led to this pump in the price.
At the time of press, the price is at $1.12, which is near its long-term support level. Moreover, the token is currently forming its base between the range of $1.31 and $1.04. A break-out or a break-down from this range will decide the future of XRP.
The MACD and signal lines are in the positive range, thus, suggesting a buy signal. However, a bearish crossover by the MACD line over the Signal line has occurred. Thus, being the lagging indicator, we will have to wait and watch if the trend reversal is on the horizon or not.
Currently, the RSI indicator is at 49%. It faced rejection at the 52% mark and, currently, is taking constant support. Thus, selling pressures are slowly mounting. We have to wait and watch if it becomes strong enough to bring about a bullish trend reversal. Until then, we can assume it will bounce back from this level.
On the daily chart, the OBV indicator has broken its long-term downtrend and picked an upward trajectory. Thus, buying volumes are higher than selling volumes.
In short, when we look at all three oscillators, we can say that the price may continue to rise. However, we cannot rule out the possibility of a trend reversal. We have to wait and watch to see if an intermittent price rise is a corrective action or the beginning of a positive trend.
Currently, the price is below the second Fibonacci pivot point of $1.19. If the bears take over from this position, then the price is likely to fall below the first, second, and third support levels of $1.12, $1.09, and $1.04, respectively.
However, chances of it breaking out are higher. And, wait for another bull trigger and then expect the price to breakout. Post which, the price will test immediate resistance at $1.35. If the price breaks this level on the upside, traders can take a long position while keeping the next target at $1.67.