XRP is currently forming a strong upward impulse after being rejected from the Daily Support Area which brought it to the Bearish Continuation point that will form the basis of this analysis, which, in my view, will be a potential trend fulcrum in the coming days.
Now, based on data from CoinMarketCap (CMC), at the time of writing, XRP has a market capitalization of $63,395,178,133 and a daily trading volume of $13,873,371,600 which makes this crypto ranked 4th in terms of market capitalization. And if we compare it to 2020, the market cap has experienced a very rapid rise as investor interest increased after Ripple, the company behind XRP, was found not to be in compliance with a US SEC lawsuit accusing them of selling tokens without a license as securities.
4 Hour Chart Technical
At the time of writing, XRP has been looking to grow as market confidence returns following its incident with the US SEC, where the re-listing of the crypto on multiple exchanges has sparked a long overdue and upbeat uptick in interest.
In our technical view, the bulls will be facing a crucial point in trend validation, where key levels in the previous heavy declines will begin to be faced which will determine how strong investors’ rally efforts will be.
Here I try to describe it in the 4-hour technical chart below:
Based on the picture above, the price seems to be trying to build a strengthening foundation in the several SR levels in the picture, where all potential trends I see will be determined from price action in the current analysis range.
In my view, at this time frame, the price of XRP is in the range of the previous Bearish Swing point which became Resistance, $ 1.42, which will be the main point of our analysis in forming a trend, which will begin to measure its strength when it touches another SR level at $ 0.96, $1.17, and $1.72.
I think these SR levels have the same strong rejection potential, so a break of one of them (with a valid) will be a trend signal that should be anticipated so you don’t miss the momentum.
Daily Chart Technical:
Also, in the medium term view, the Ripple token is struggling to gain strength while trying to recover from the Support Area, where this Area became the Higher Low point in XRP.
In view of this analysis, price has just rejected from our Key Daily Resistance level, $1.42, which, in my opinion, is a crucial level for the trend (bullish continuation or not) as it is a Bearish Continuation point, so price needs to build a Bullish Continuation structure to sustain positive expectations of investors.
And for the Bearish scheme, the price failed to build a strengthening foundation which resulted in a continued rejection and fell from this Key Resistance level, so the Support level on the 4-hour chart will start to play to back up market optimism.
And on a fundamental view, XRP’s strong decline was formed due to an SEC lawsuit that left Ripple and its token pretty badly, having been delisted from several exchanges.
The end of the showdown with the SEC has again boosted XRP’s prospects, so the long-term bulls are still holding on to the crypto.