XRP The price has been rising slowly over the past few days. Due to the changing crypto environment, the bullish momentum for Ripple is waning. This development indicates that there may be a potential pullback for the remittance token.
XRP Price Needs to Take Control
The XRP price increased by 13% from May 16-19. It is currently facing a resistance level at $0.469. No pressure to buy and bitcoinThe choppy outlook seen in . has caused altcoins to rest.
In addition, the higher highs reached by the XRP price in the last two days contrast with the lower peaks of the Relative Strength Index (RSI). This mismatch is called the “bearing bias”. It usually leads to a decrease in the price of the underlying asset.
In this case, the bearish divergence indicates that a pullback in XRP price is likely. The likely target is $0.426, the initial downside inefficiency. If the selling pressure continues to increase, Ripple is likely to visit the next inefficiency at $0.392.
These pullbacks will mean 8% and 15% moves, respectively, for those holding the current position at $0.465.
While the bearish view makes sense for XRP price, traders need to observe that the Awesome Oscillator (AO) is not producing lower highs. Instead, the momentum indicator has formed higher highs.
Therefore, the bears are unlikely to reign free. If the overall market outlook improves as the Bitcoin price rises, the XRP price is likely to trigger an uptick as well. In such a case, if the bulls take control and turn the $0.495 hurdle into a support level, it will invalidate the bearish thesis.
This development could see XRP price attempting to rally the buy-stop liquidity holding above par highs of $0.548.