XRP remains undecided after its latest rally towards the $0.93 region. Although the rally revived interest in XRP, the subsequent drop made investors a little worried. As uncertainty remains for the altcoin, crypto analyst Predycto offered an encouraging perspective, assuring that the current drop is not cause for concern.
Predycto, four hours on the chart He noted a positive trend observed with XRP. According to him, XRP continues to record “higher lows”, which is a positive indicator. “Higher lows” are when an asset does not fall below the previous bearish level even though it has fallen within a certain period of time. So it bottoms out, but the new bottoms are higher than the previous ones (it can be seen more clearly in the chart below). This indicates that buyers remained strong during the downturn and the asset could potentially bounce back.
According to Predycto’s analysis, the current decline of XRP does not indicate a permanent downtrend in the market. Instead, the cryptocurrency still seems to be holding its bullish trend, creating “higher lows” giving investors hope.
While higher low formations provide optimism, there is another situation that needs attention: XRP’s trading volume. Predycto emphasized that XRP trading volume has fallen since the previous week.
This may indicate that the transaction density in the XRP market has decreased and indicates that investors should carefully reconsider their decisions about the asset. A decrease in trading volume may mean less liquidity in the market, creating a more sensitive market to sudden price movements.
If we look at the data in more detail, the 24-hour trading volume of XRP reached a 23-month high of $10.4 billion on July 13. However, volume has followed an overall downward trend since then. As a result, the drop in XRP’s volume has triggered speculation that the rally could face extinction. Despite this worrying trend, Predycto confidently believes that the uptrend continues.
“XRP has dropped more than 10% in 2 days – should you be worried? The answer is… not yet! XRP is still forming higher lows which means the uptrend is still intact. One worrying thing is that the volume has been decreasing since last week! This means that fewer people are trading Ripple, indicating a weakening trend. It’s nothing to worry about for now, but if we start to break below 0.70, I would say we could return to 0.6 as potential support.”
You can follow the current price action here.
Source : the crypto basic