The price of XRP has dropped 5% in the past 24 hours, currently trading around 2.89 USD. Although it seems like a minor correction in the cryptocurrency market, signals from technical charts warn of a more complex trend in the future.
XRP is facing signs of bearish divergence on the weekly chart, indicating downward momentum while the price remains slightly higher. On the daily chart, the price tends to trade sideways with supply pressure at the resistance level, similar to the scenario in early 2024 with potential for a significant drop in the coming months.
MAIN CONTENT
The weekly chart shows a bearish divergence, warning of weak recovery momentum.
The price of XRP fluctuates in a tight support and resistance zone on the daily chart.
The current situation is similar to the early part of 2024 before the price dropped significantly.
What does the weekly chart warn about the price of XRP?
The weekly chart of XRP shows a bearish divergence, a technical indicator warning that the upward trend may lose momentum. Although the price has slightly increased to a new peak, the RSI indicator is steadily decreasing, creating a contradiction regarding trend strength.
Bearish divergence often signals a potential deep correction phase, similar to the situation at the end of 2020 that caused XRP to experience several months of strong decline. Weak momentum on the weekly chart does not necessarily lead to an immediate collapse but increases the risk of a correction in September and October.
Bearish divergence on the weekly chart indicates that the momentum of this cryptocurrency market is weakening, an important signal for investors to closely monitor upcoming developments.
Analysis from a cryptocurrency technical analyst, September 2024
What does the daily chart say about the current price trend of XRP?
Since the price of XRP fell below 3.40 USD, the price structure has recorded a weakening trend. The price is currently in a sideways range between clear support and resistance, reflecting a tug-of-war between buyers and sellers.
Specifically, consecutive support levels are 2.90-3.00 USD, 2.75 USD, and further at 2.55-2.62 USD. Above, strong resistance is at 3.10-3.15 USD and an additional range of 3.35-3.40 USD. If the 2.90 USD level is maintained, the price may continue to trade sideways; otherwise, breaking this support could pull XRP down to a lower range of 2.75 USD or further.
Does the current situation resemble the early part of 2024?
Price movement analysis shows that the current structure of XRP nearly replicates the pattern from January to March 2024. During that time, XRP traded in a volatile sideways range before starting a downtrend.
The forecast scenario is that the price will have short-term rebounds but the main trend remains downward. This signals the market may face prolonged downward price pressure in the coming weeks.
The price situation similar to early 2024 emphasizes that investors need to prepare for prolonged corrections in a highly volatile cryptocurrency market.
Expert opinion on cryptocurrency financial analysis, September 2024
Frequently asked questions
Will the price of XRP drop significantly in the near future?
Based on the bearish divergence and current price structure, the likelihood of a significant drop increases, especially if the price breaks below the 2.90 USD support level.
What is the most important support level for XRP currently?
The range from 2.90 to 3.00 USD is considered an important immediate support, playing a decisive role in the short-term trend.
What is bearish divergence on the weekly chart and how does it affect?
Bearish divergence is the contradiction between rising prices and declining RSI indicators, warning that the upward trend may weaken and lead to a correction.
At what price level can XRP recover?
If the price maintains above the 2.90 USD level, XRP may trade sideways and build momentum for technical rebounds in the short term.
Which previous period does the current price pattern of XRP resemble?
The current price movement of XRP is very similar to the early part of 2024 when the price went through a sideways phase before a significant drop.
Source: https://tintucbitcoin.com/du-bao-gia-xrp-ngay-20-8/
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