Analyzing XRP’s Potential Decline: Will the Cryptocurrency (XRP) Revert to $0.56?

  • Historic patterns suggest that XRP’s price may be poised for an imminent rise.
  • The token was oversold, suggesting a reversal to the north.
  • DAA fell more than XRP’s price, indicating that $0.50 could be a good entry.

XRP, the native token of the XRP Ledger, shows signs of a potential price increase. The token was recently oversold, and the Daily Active Addresses (DAA) fell more than XRP’s price, suggesting a possible entry point at $0.50.

RSI Indicates Oversold Status

XRP became oversold on the 12th of May, as indicated by the Relative Strength Index (RSI) on the 4-hour chart. The RSI is a technical indicator that shows if a cryptocurrency’s momentum is bullish or bearish. A reading at 70 and above suggests that a token is overbought, while a reading at 30 or below indicates that the asset is oversold. On the 12th of May, the RSI for XRP dropped to 30.09 before rising to 35.65, suggesting a significant bounce could be in motion.

Price-DAA Divergence

Another metric considered was the price-DAA divergence. DAA tracks the level of user interaction on the network. With the price-DAA divergence, traders can find entry and exit points. If the price grows more than the DAA, then it could be a sign to buy. On the other hand, a situation where the price declines more than the DAA is a solid exit signal. As of this writing, the cryptocurrency’s price-DAA was -58.28%, indicating that activity on the XRP Ledger has been unimpressive.

XRP’s Correlation with BTC

As of this writing, BTC’s correlation coefficient with XRP was 0.56. Values of the correlation coefficient range between -1 and +1 where the former indicates divergence while the latter a strong similar movement. Therefore, XRP’s correlation with the number one cryptocurrency per market cap was weak. This suggests that if the price of Bitcoin fails to move northward, that might not stop XRP from rising in the $0.56 direction.

Conclusion

In conclusion, historic patterns and current metrics suggest that XRP’s price may be poised for an imminent rise. The token was recently oversold, and the DAA fell more than XRP’s price, indicating that $0.50 could be a good entry point. However, traders should not rely on these indicators alone and should consider other market factors before making a decision.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.

BREAKING NEWS

Binance Futures Delists USD-M XEM, ORBS, and LOOM Perpetual Contracts: Impact on ORBS Cryptocurrency Price

Binance Futures Delists USD-M XEM, ORBS, and LOOM Perpetual...

Amber Group Withdraws 6.92 Million ENA from Binance: A Look at Recent Crypto Movements

On November 29, COINOTAG News reported a significant transaction...

Binance to Enhance Horizen ZEN Network with Support for Upgrade, Driving ZEN Coin Value to $14.58

Binance to Support Horizen ZEN Network Upgrade --------------- 💰Coin: ZEN ( $ZEN...

ETH Surge: Winslow Strong Transfers $33.7 Million in Ethereum to Coinbase Amidst Market Rebound

COINOTAG News, dated November 29, reports significant activity in...

Bitcoin Futures Open Interest Surges to $60.9 Billion Post-Trump Victory: Analyst Insights on Leveraged Trading

According to COINOTAG News on November 29th, data from...
spot_imgspot_imgspot_img

Related Articles

spot_imgspot_imgspot_imgspot_img

Popular Categories

spot_imgspot_imgspot_img