Several indicators suggest that the coin is in the process of reversing after months of bearish trends.
The price performance of XRP was mostly mimicking the movement of large caps such as Bitcoin and Ethereum as it has lost over 40% of its value in the past month. The disappointing performance also reflected on the asset’s profitability, leaving a large section of investors at a loss. But according to technical indicators, the long-awaited bounce may be closer than it might seem.
The bearish rally is fading
Although volume is not the most popular tool for capturing market reversals, it is still a good way to determine the strength of a trend, as fading volume can reflect traders’ reluctance or inability to keep up with current inflows on the market. Is. ,
As the volume profile on XRP shows, the downtrend is no longer progressing at the pace it had previously. At the end of April, the bears were showing more activity as the volume was on an uptrend, as opposed to the end of May.
moving averages diverge
Although placing moving averages on the chart may not indicate a continuation or reversal of the rally, we are able to predict an increase in volatility by looking at the range between the short and long term lines.
advertisement
With XRP, the moving averages diverge from each other, indicating further volatility increases, which could be directed upwards.
RSI is moving up
In addition to the above indicators and signals, a reversal from the “oversold” zone of the RSI indicator is also a sign in favor of a reversal as the divergence between the chart and the indicator would suggest that a rally is dead before starting.
At press time, XRP has risen to $0.39 and is down 0.58% over the past 24 hours.
