XRP short-term Price Analysis: 05 September

In sync with most of the altcoin market over the past few days, XRP’s price also took a hit as it fell by close to 15 percent on the charts. Since then, the cryptocurrency has been confined below the $0.257 price range, a development that seems to have undone the gains XRP noted over the past month.

At press time, XRP was being traded at $0.24, while registering a market cap of $11.2 billion. Over the past 24-hours, XRP’s price had depreciated by close to 3 percent, while registering a 24-hour trading volume of $1.7 billion.

XRP 1-hour chart

According to XRP’s hourly chart, the cryptocurrency’s price movement has been confined to a descending channel formation since yesterday. While a breakout north is normally expected for such a formation, XRP’s price is likely to remain within the formation over the next 24-hours.

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At press time, the coin was testing its support level at $0.247. However, if the bearish pressure were to persist, in line with the formation at hand, a further dip on the charts towards the next point of support at $0.244 can be expected. In the unlikely scenario of the coin’s price immediately breaking out, then it will have to overcome the resistance levels at $0.252 and $0.257.

Source: XRP/USD, TradingView

In the short-term and within the 24-hour window, the price of XRP is likely to register a minor dip on the charts. At press time, the MACD indicator had undergone a bearish crossover, while signaling downward movement for the coin’s price. Further, the RSI continued to remain close to the oversold zone. However, a move towards the neutral zone could be on the cards for XRP’s RSI.

Source: CoinMetrics

XRP’s correlation with Bitcoin over the past 3 months has remained strong, despite some bouts of volatility here and there. The same was evident after XRP mirrored Bitcoin’s price movement over the past few days.

Conclusion

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XRP’s price action on the charts over the past few days hasn’t been very inspiring and its downward movement is likely to sustain itself in the short-term before it rallies. In a day or two, however, the coin’s price is likely to dip further and move towards the second support level at $0.244. However, if the coin were to note bullish momentum, it may head towards its immediate support level and break out of the descending channel formation.