XRP Consolidation: Will Key Support Level Trigger The Next Big Move?
- XRP price remains in a narrow consolidation, with traders awaiting a decisive breakout.
- Despite a brief price rise, the cryptocurrency remains below its critical 200-day moving average, signaling potential risk.
- Trading volume remains strong at $1.01B, signaling active market interest as XRP nears critical support at $0.50.
The XRP price has ranged within a tight consolidation channel with investors and traders watching for the coins next major directional move. The cryptocurrency has continued to decline in price over the past 24 hours, although there has been a slight price increase; analysts are predicting further losses unless market conditions change.
On Wednesday, Crypto WZRD posted on X that provided insights into XRPs current market standing. He said that XRP has closed the day without any clear directional movements and has stagnated in the daily trading range. In the view of the analyst, lower time frame volatility needs to be enhanced in the market to generate fast trading opportunities. He is aiming at following the intraday chart formation in the subsequent days to look for opportunities that he may trade.
In the past week alone, XRP has plummeted from $0.65 and fell below the 200-day moving average that is now at $0.55. This bearish pressure has continued to cast a shadow over the market, especially since XRP has had difficulties breaking past this key level and has traded below it while oscillating sideways.
Source: TradingView
The recent price action has been on the $0.50 support level and this level might be crucial in near term direction of XRP. If the price drops down to this level, the price may drop even more. But a bounce from this level may also lead to the buying pressure and a possible price bounce back.
At the time of writing, Ripple coin has been trading at $0.5315, a 1.55% increase in the last 24 hours. This brief rally is some good news for those trading in the short-term but has not been enough to change the overall trend. In the last week, the XRP currency has lost 8.73% of its value which is not a good sign for those who want the currency to rise again.
Source: TradingView
While there has been a somewhat mixed price performance, there has been good trading activity. In the past one day alone, XRP has seen a trading volume of $1.01 billion which gives a picture that the market is still active for the token. This high level of trading means that investors are paying keen attention to cryptocurrency awaiting a breakthrough.
The future of XRP in the short term cannot be predicted. While Crypto WZRD predict more volatility with a potential test of key support levels, the market is still waiting for stronger signals to establish the cryptocurrencys potential next major move. There, traders are advised to pay attention to the charts and watch the next few days as they could turn out to be decisive for XRP.
Read more: https://www.tronweekly.com/xrp-consolidation-will-key-support-level/
Text source: TronWeekly
