The bulls followed XRP closely!

XRP is facing a prolonged phase of consolidation, a trading pattern that offers possible clues about the token’s next price trajectory.

The bulls followed XRP closely!

XRP’s value has stalled in the same region for several months and shows no signs of a possible breakout. This development contrasts with the overall market as most altcoins take advantage of the 2023 rally for record price breaks.

Specifically, between the end of October 2022 and January 25, the value of XRP was predominantly traded in the $0.40 to $0.46 range. However, the token momentarily broke key support and resistance levels throughout the period while maintaining a high trading volume.

The bulls followed XRP closely!  - Picture : 1

XRP candlestick chart. Source. Trade View

Why is XRP consolidating?

While price action can be seen as a positive sign as it suggests that the coin’s price is not experiencing market-related fluctuations, it can also be interpreted differently.

The scenario could show XRP stalling before making any significant move in any direction. At such a stage, the XRP community may be watching market conditions and waiting for a clear signal to buy or sell. Historically, this type of consolidation has resulted in a price boom. Therefore, the bulls may be watching the situation before deciding to act.

Also, the price stagnation may have been triggered by market participants who believed that XRP would most likely fall, resulting in attempts to dump massive amounts of the token.

However, XRP seems to have responded to this campaign, which has triggered a strong demand for the coin and buyers willing to take large sell orders. This could be a sign that XRP is looking at a possible price boom in the coming days.

It is important to note that consolidation can signal indecision among XRP investors due to the inability to predict possible price action. This coincided with a phase where XRP is expected to be affected by the ongoing legal litigation between and the Securities and Exchange Commission (SEC). Related to the issue, the blockchain firm is accused of selling securities in the form of unregistered XRP.

XRP price analysis

At press time, XRP was trading at $0.41, down about 3.5% daily. On the weekly chart, XRP is up 2%.

Bulls follow XRP closely!  - Picture : 2

XRP seven-day price chart. Source: Finbold

The token controls a market cap of $20.6 billion.

Disclaimer: The content on this site should not be considered as investment advice. Investment is speculative. When investing, your capital is at risk.

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button