Traders are getting increasingly bored by XRP. Over the last few days, it has maintained a particular price range for the past seven days. A closer look at the chart also points to low volatility during this period, further exasperating traders.
During the previous week, reports had it that some hackers breached the wallet of Ripple’s co-founder. They carted away with $112 million. As a result, prices dipped by more than 5%. Nonetheless, efforts are underway to recover the funds, with Binance freezing some.
Amidst all of the bearish sentiment in the crypto market, three indicators are shining beacons of hope. It is also worth noting that these metrics reflect both short-term and long-term.
MACD Suggests Impending XRP Surge
The Moving Average Convergence Divergence is one of the indicators to pay attention to in the short-term. The metric is showing that the asset is currently on a bullish trend. This comes after the coin had a positive divergence. Its 12-day EMA is gradually parting away from the 26-day EMA. A closer look at the metric shows no imminent signs of an impending downtrend.
Further analysis proves that the most recent small increase is also sustainable as there is equal trading volume to back it. The chart above shows the accumulation and distribution chart. A closer look at the indicator provides clear evidence of the lines following the price. This means there is no false uptrend that may quickly end in a massive if trading conditions remain constant.
On the Long Term
The Elliot Wave pattern is one of the most accurate chart trends to watch. We pay attention to two important trends while using it: the impulse wave and the corrective wave. The weekly charts clearly depict a corrective wave with the red lines indicating the makeup.
Following the formation in the chart above, there have been attempts at recovering. It’s been slow. As a result, price movements failed to form an ascending wave. This means that XRP is gearing up for a massive rally.
To understand the potential peak of the next surge, it is important to pay attention to the previous high. The corrective wave started at $1.20. It is easy to conclude that the asset has the potential to return to $1 when the uptrend starts. Additionally, it is worth noting that MACD’s reading on the 1-week timeframe may also support claims of an impending surge as it nears the end of its downtrend.
Nonetheless, current prices are what many will call the perfect value. The Accumulation and Distribution chart is also in agreement with this. However, the indicators do not say anything about the next price action.
In the Coming Days
Following the bullish divergence on the 1-day timeframe, XRP may continue to see small increases. It is also worth noting that this indicator does not control prices but hints at what could happen if trading conditions remain the same. Additionally, the crypto market is currently seeing considerable price hikes at this time.
The altcoin may break its seven-day trend and gain stability above $0.52. If this happens, the next critical level it may retest is $0.60.
