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Here Are 3 Indicators Suggesting XRP Is Bouncing from $0.4

Thu, 06/02/2022 - 14:35
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Arman Shirinyan
Numerous indicators suggest that coin is in process of reversal after months of beartrend
Here Are 3 Indicators Suggesting XRP Is Bouncing from $0.4
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XRP's price performance was mostly replicating the movement of large caps like Bitcoin and Ethereum as it has lost over 40% of its value in the last month. The depressing performance also reflected on the profitability of the asset, putting a large part of investors in loss. But according to technical indicators, the long-awaited bounce might be closer than it may seem.

Bearish rally is fading

While volume is not the most popular tool for catching reversals on the market, it is still a good way to determine the power of the trend, as the fading volume may reflect the unwillingness or inability of traders to keep up the current flow on the market.

XRP TradingView
Source: TradingView

As the volume profile on XRP suggests, the downtrend is no longer fueled at the pace it was before. At the end of April, bears were showing more activity as the volume was on the uptrend, contrary to the end of May.

Moving averages are moving apart

While the placing of moving averages on a chart cannot give signals about the continuation nor reversal of a rally, we are able to predict volatility spikes by looking at the range between short- and long-term lines.

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With XRP, moving averages are spaced out from each other, suggesting a spike in volatility ahead, which could be directed upward.

RSI is trending up

Besides the abovementioned indicators and signals, the reversal from the "oversold" zone of the RSI indicator is also a sign in favor of a reversal since the divergence between the chart and the indicator would suggest that a rally is dead before it started.

At press time, XRP moved to $0.39 and lost 0.58% in the last 24 hours.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.