MACD Signals Strength, But Risks Remain An indica

MACD Signals Strength, But Risks Remain

An indicator that shows a bullish trend, The Moving Average Convergence Divergence (MACD) endorses the bullish trend. The MACD line has moved a long way above the signal line. In the current readings, the MACD stands at 0.1910 and the signal line at 0.1189. The values imply the escalation of buyer activity.

There are however risks associated with overbought indicators. The RSI is also abnormally high. The histogram of MACD is steep. Such trends might result in short term consolidation. Market participants are currently waiting to see a sell-off or minor correction so that the coin can resume its rally up above the three dollar mark.

The picture on volumes is ambiguous. Coinglass shows that the trading volume of cryptocurrency decreased by 40.4%. It is currently at $13.20 billion. Meanwhile, Open Interest has increased by 5.05% to give it a value of $8.34 billion. This implies that the number of long-term gamblers betting on XRP is on the increase.The psychological barrier at 3 will be very essential. In case XRP manages to stand at this point, it may result in further growth. Nevertheless, their inability can promote profit taking and short-term fixing.

XRP has now reached a critical point. The enthusiasm of investors is increasing with a warning to exercise caution. There are positive technical indications, which are also a caution, as they portend a deceleration. Analysts are still optimistic, though the market may give short-term consolidation prior to the next move.

The traders are still following XRP as it breaks out. The coming weeks could spell out the future of Ripple in this cryptocurrency bull market, depending on whether it pumps up or cools down.