Following last week’s massive dump, Ripple price regains its stance in a long trend. Also, the bulls must outperform the bears in this current market momentum.
Last week was not a good trading week for Ripple buyers as the XRP token posted a massive 42% loss. As a result, the week closed below $0.4255. Notably, the entire week the token price steadily followed a huge downtrend, falling to $0.4018 before rising back up to $0.4123 and ending there for the week.
In particular, most indicators have dipped into the oversold zone, implying the possibility of a temporary uptrend.
However, the token price must create a higher low and a higher high to validate this momentum reversal. This also means that the bulls need to push XRP price up to $0.65 before it can create an uptrend.
What are the odds?
Due to the massive drop, the XRP token can only be expected to record bullish momentum, or bullish mean reversal, temporarily. On the other hand, we can expect it to be short-term given the current market structure. The technical oscillator value shows that the token tested the all-time low (ATL) on the hourly, daily and weekly charts.
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It is also worth noting that the token price is still trading below the 50 and 100 day EMA. Therefore, renewed buying pressure would force the price to reach the 50-day exponential moving average before testing the $0.50 psychological mark.
On the other hand, a decrease in bearish momentum would see the coin continue in a steady downward or downward trend. If XRP drops below the current session low, it would test Friday’s low at $0.40.
Moving Average Convergence Divergence – The MACD is trading below the midline with ever-growing bullish momentum. Relative Strength Index – The RSI remains close to the average line, with no established directional bias.
A summary about Ripple?
Ripple is an innovative crypto project that works very interestingly as a cryptocurrency and payment gateway. Created by Ripple Labs, the Ripple crypto project allows users to facilitate payments, crypto loans and other financial platforms. While Ripple allows payments across the world, the XRP token allows users to switch between cryptocurrencies.
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Notably, Ripple was established in 2012 by Chris Larsen together with Jed McCaleb. Four years later, the company bought BitLicense from the state of New York to increase the integrity of its XRP token. However, following the global crypto crackdown, Ripple fell over 21% and struggled within that zone for a long time.
Featured image from Pexels, chart from TradingView.com