- XRP showed signs of a bullish reversal, with a double bottom formation at $0.40.
- The Ultimate Oscillator and RSI suggested a balanced state without strong buying or selling pressure.
XRP has recently shown a modest bullish reversal, sparking speculation about a possible massive rally.
This upward momentum has raised questions about whether XRP can maintain this trend and ultimately trigger a larger market surge.
AMBCrypto looked at the XRP/USDt chart and saw a double bottom formation around $0.40, meaning a bullish reversal occurred there.
Source: TradingView
After the double bottom formation, the price saw a bounce but has faced resistance around the $0.55 level as highlighted by the recent highs.
Repeated tests of this resistance without a breakthrough will either consolidate for another up attempt or turn lower again if buyers lose momentum.
Current Definitive Oscillator readings around the mid-level indicate neither strong overbought nor oversold conditions, suggesting a lack of decisive momentum in the market.
What Challenges XRP’s Bullish Outlook?
The main challenge for XRP is to overcome the $0.55 resistance and stay above it. Doing so could confirm a continued bullish reversal pattern and potentially lead to a test of higher resistance levels around $0.65.
Source: TradingView
The band-adjusted Relative Strength Index (RSI) was showing a value just below the midpoint (50) at the time of writing, suggesting that the price was neither in oversold nor overbought territory.
XRP price has been fluctuating within a relatively tight range between the MA50 and the support line at approximately $0.4519.
This could lead to consolidation, and traders may want to wait for a clearer signal before making any bigger moves.
The convergence of the moving averages means there are bearish nuances due to the placement of the MA200. XRP’s social dominance and volume remained strong, correlating with significant trading activity.
Source: Santiment
There is some degree of visible correlation between currency inflows and price declines.
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For example, spikes in capital inflows on June 19 and 22 corresponded with notable price declines, suggesting selling pressure following the inflow.
High capital inflows could also reflect bearish sentiment among investors, prompting them to sell their holdings, possibly in reaction to market news or price expectations.
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