With over 3% loss in the crypto market, the majority of the digital assets are charted in red. The price actions are losing momentum, and the largest assets, Bitcoin (BTC) and Ethereum (ETH), are hovering on the downside. Among the altcoins, Ripple’s XRP has strengthened its position within the bearish trap, posting a drop of over 4.66% in the last 24 hours.
A steady bearish correction could trigger more losses. In the early hours, the asset traded at a high of $1.42, and its lowest range was marked at $1.33, with the bears taking control. Besides, as per CMC data, XRP trades at $1.36, with its trading volume having surged by over 65% to $2.28 billion. The market has seen $11.15 million worth of liquidation of XRP.
Zooming in on the 4-hour price chart of XRP, it shows the downturn, with its price moving down to the support level of $1.24. If the bears gained more traction, they may initiate the emergence of the death cross and send the asset’s price toward $1.10 or even lower.
Conversely, assuming the XRP bulls re-enter the market, the price could mount and hit the initial resistance at the $1.46 mark. Upon the upside pressure strengthens, the golden cross might take place, and likely drive the price movement upward above the $1.57 zone.
Are XRP’s Momentum Indicators Hinting at an Extended Pullback?
XRP’s Moving Average Convergence Divergence (MACD) line and the signal line are settled below the zero line. This positioning hints at sustained downside momentum. As the broader market structure is negative, a steady bullish reversal is necessary to turn the chart positive.
In addition, the Chaikin Money Flow (CMF) indicator found at -0.01 exhibits very mild selling pressure in the XRP market. With the value being below zero, the capital is flowing out of the asset. Also, the momentum remains largely balanced, having a brief bearish tilt.
The daily Relative Strength Index (RSI) at 30.36 signals that XRP is hovering in oversold territory, and the bearish momentum is elevated. Though a technical bounce could emerge if the buyers step in. Moreover, XRP’s Bull Bear Power (BBP) reading of -0.1079 implies a moderate to strong bearish dominance. Significantly, the sellers are in control, and the downside momentum is building.
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