XRP is facing an overall downtrend despite short-term upward fluctuations.
Even though XRP has had slight recoveries, the main trend on the weekly and daily charts still contains significant bearish pressure. Investors should be cautious before short-term fluctuations and focus on important support and resistance levels to assess the trend.
MAIN CONTENT
XRP is confirming bearish divergence on the weekly chart with weakening RSI signals.
Recent price increases may only be technical recoveries within a long-term downtrend.
Support areas from 2.55 to 3 USD and resistance around 3.20 and 3.40 USD are points to watch.
What signals is XRP recording on the weekly chart?
XRP is currently confirming a "bearish divergence" on the weekly chart as the price makes higher lows while the RSI index makes lower lows. This is a sign that upward momentum is weakening, often foreshadowing significant price declines.
This divergence appeared at the end of 2020 and the beginning of 2021, leading to XRP dropping over 60% within about three months. This signal is highly specialized in technical analysis and is often seriously considered by serious investors.
How can the short-term fluctuations of XRP be explained?
Although XRP's price has some temporary increases, analysts warn that these are merely technical recoveries within an existing downtrend. The weekly and daily charts still indicate greater selling pressure, and the price structure remains bearish.
This is similar to XRP's movement in January this year, just before XRP continued to drop sharply. If the market does not have any sudden major fluctuations, the likelihood of the downtrend continuing is very high.
The RSI divergence signal indicates that downward momentum is increasing, warning investors not to be overly optimistic about technical recoveries.
Cryptocurrency analyst, 2024
What are the current important support and resistance levels for XRP?
Currently, XRP is testing the key support area from 2.90 to 3 USD. If the price continues to decline, the next support area will fall around 2.55 to 2.62 USD. These levels were previously resistance and may now halt the decline.
On the contrary, the nearest resistance area is located at 3.10 to 3.20 USD. If this area is successfully broken, the next resistance level will be 3.40 USD – a significant barrier in establishing a sustainable uptrend.
Frequently Asked Questions
Is XRP currently trending up or down in the market?
XRP is in an overall downtrend with strong pressure on the weekly and daily charts, despite short-term upward fluctuations.
What is RSI bearish divergence and how does it affect XRP?
RSI bearish divergence is a psychological signal indicating that upward momentum is weakening, often leading to adjustments or significant price declines.
What important price levels should investors monitor for XRP?
Support areas from 2.55 to 3 USD and resistance from 3.10 to 3.40 USD are important points to consider when assessing the next trend.
Can XRP recover if it surpasses the 3.20 USD resistance area?
If XRP successfully breaks through the 3.20 USD area, the bullish outlook will be more favorable, but further observation of other technical signals is needed.
How can investors avoid risks when trading XRP during this period?
Investors should manage risk tightly, not rely on short-term recoveries, and closely monitor important support and resistance levels before making decisions.
Source: https://tintucbitcoin.com/xrp-du-bao-giam-sau-canh-bao-nguy-hiem/
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