XRP short-term Price Analysis: 01 August

Disclaimer: The findings of the following analysis attempt to foresee XRP’s price movement over the next 24 hours

Towards the end of July, XRP’s price action seemed to come across strong bullish momentum on the charts. While the second quarter of 2020 wasn’t very promising for XRP, something evidenced by the crypto dropping a place on CoinMarketCap’s list, the uptrend the coin has been on recently has been seen as a welcome change by many.

At press time, XRP was being traded at $0.267, with the cryptocurrency having a market cap of $11.8 billion. Over the past 24 hours, XRP’s price was noting a substantial hike of 7.7 percent, with a 24-hour trading volume of $2.2 billion.

XRP 1-hour chart 

According to XRP’s 1-day chart, the coin’s price had been stuck in an ascending channel formation since 29 July. However, over the past 24-hours, the price broke out of the formation and contrary to the expected breakout, strong bullish momentum was enabling the coin to surge towards its resistance at $0.269. This price range was last visited in February 2020, with the previous day’s price movement reminiscent of XRP’s early-2020 value.

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At press time, the crypto’s resistance at $0.269 seemed to be quite a challenging price point for XRP to breach. If the coin’s price fails to go past the resistance, a price correction can be expected with XRP’s trading price moving towards its immediate support at $0.249. There are two more strong points of support that have been tested in the past week at $0.242 and $0.235, and these two levels can help stabilize XRP’s price if the bears were to take over.

Source: XRP/USD, TradingView

A look at XRP’s indicators would suggest that the possibility of a minor correction can’t be overlooked. The MACD indicator underwent a bullish crossover yesterday, but a reversal may take place if the MACD line and Signal line continue moving towards each other. At press time, the RSI indicator, while in the overbought zone, had started moving in the opposite direction.

Source: CoinMetrics

Altcoins normally tend to have a high correlation with the world’s largest cryptocurrency, Bitcoin, but the past few months have indicated otherwise after the same fell to 0.79. However, the situation is quickly changing, with the correlation between BTC and XRP once again on the rise according to CoinMetrics’ data.

Conclusion

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XRP’s price saw spectacular bullish momentum over the past 24-hours, enabling the coin to surge to its $0.269 price point. However, if the crypto is unable to breach its aforementioned resistance, it is likely to head towards its immediate support at $0.249 in the next 24 hours.