A big symmetrical triangle has locked the price of XRP, so it cannot grow too much due to lower volatility. A strong rejection of low prices and the rectangle where the value has been are clear signs of a possible reversal.
Amid the drop in prices in the crypto market, the value of the native cryptocurrency Ripple suddenly jumped higher. However, all those profits do not protect against the risk of further falls. The following technical analysis of XRP will help potential investors understand better where the asset may head.
When writing this article, XRP is trading at around USD 0.89 and has accumulated a 6.5% profit in the last 24 hours. Its daily trading volume is above 4.5 billion, and its market capitalization is about USD 42.1 billion, according to CoinGecko.
The announcement that Ripple would partner with the Republic of Palau contributed to driving the recent rally. That nation seeks to explore the development of a central bank digital currency (CBDC) using the new XRP Ledger network.
The entrance of Ripple into the CBDC market is raising some optimism in the market of the XRP cryptocurrency. However, the general bearish trend in the crypto ecosystem prevents the gains from extending significantly.
The Technical Analysis of the Price of XRP
The weekly chart shows that a symmetrical triangle has locked the price of XRP for months. Given that its volatility has decreased, the value of the cryptocurrency cannot make movements to grow too much.
The price of XRP may currently be in a broad price range with no clear direction. Despite that, the previous dominant force is bullish, so it could probably break the triangle from the top. That possibility would give way to relevant momentum in the market of the Ripple cryptocurrency.
Short-Term Predictions about the Value of XRP
The technical analysis of the XRP daily chart indicates a smaller range, with resistance at USD 0.86 and support at USD 0.76.
Even though the short-term trend is bearish, there is a significant rejection of low prices. That adds to the rectangle where the value has been, a clear sign of a possible pullback.
The price will probably have some more losses over the next few days. However, the high-demand zone above USD 0.60 could curb sales, leading to a significant bullish rally.
The Position of XRP in the Ranking of Cryptocurrencies
The native cryptocurrency of Ripple occupies 7th place in the cryptocurrency ranking below Solana (SOL). This week, XRP has grown by 14.2%, and SOL has accumulated a 16.2% profit.
Concerning SOL, it is currently trading at around USD 179.3 and has achieved a 4.4% gain in the last 24 hours. Its daily trading volume is above USD 1.7 billion, and its market capitalization is about USD 55.7 billion, according to CoinGecko.
The current uncertainty in the cryptocurrency market makes it difficult to predict the price of XRP in the short term. However, the above technical analysis indicates that there might be a pullback in its value.
By Alexander Salazar
