On Apr 3, the price reached a high of $0.38. A rapid decrease was followed by a similarly rapid increase.
Price made a higher high of $0.385 on Apr 5.
Will XRP eventually reach $0.40 or fall back to lows experienced in March?
Let’s find out.
XRP (XRP): Highlights and Trends For April 5
- The price of XRP/USD has been on an uptrend since Apr 2.
- It is trading inside a horizontal channel.
- There is bearish divergence developing in the RSI and the MACD.
- There is support near $0.345
On Apr 3, the price reached a low of $0.375. Several market cycles have been completed and the price has reached the same level three times.
Tracing these highs gives us a horizontal resistance line:
On Apr 2, the price reached an hourly low of $0.327. A gradual increase ensued, followed by a rapid decrease. The price reached the same level three times.
Tracing these lows gives us a horizontal support line.
The resistance and support lines combine to create a horizontal channel:
The price is very close to the resistance line of the channel.
Will it break out? In order to answer that, we need to take a look at some technical indicators.
To better assess possible future price fluctuations, we incorporate the MACD and the RSI into the analysis.
Combining MACD and RSI bullish/bearish divergence with support/resistance essentially predicts price fluctuations.
On Apr 2, the price reached a high of $0.363. It has reached or exceeded this level several times since.
Similarly, the RSI made a high on Apr 2 while the MACD made on Apr 3. Both have continued to generate lower values since.
This is known as bearish divergence and often precedes price decreases.
Using these indicators, it is likely that the price decreases towards the support line of the channel.
Where Might XRP’s Price Land?
The closest support area is found near $0.345. We believe it is likely that the price will reach this area.
Based on this analysis, the price of XRP is likely to undergo a correction. Price is expected to drop toward the support line of the channel.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.