In brief:
- Initially, XRP/USD looked set to lose the $0.16 support zone.
- The coin has since reclaimed $0.17 and is currently trading at $0.1766.
- However, one analyst warns this might be a brief rally.
In the last 24 hours, the crypto markets have gained $11 Billion in market capitalization. The total market cap now stands at $186.5 Billion with Bitcoin leading the pack at a value of $6,655. The majority of the cryptocurrencies are in the green with XRP gaining 2% in the last 24 hours. The remittance coin is currently valued at $0.1766 at the time of writing this.
Brief XRP/USD Price Analysis
Further analyzing the 6-Hour XRP/USD chart courtesy of Tradingview.com, we observe the following.
Firstly, the current price is within a rising wedge and well above the 50 (white) moving average and the 100 (yellow) moving average. With the two MAs acting as support, XRP/USD could be set to break the upper ceiling of the wedge and retest previous highs at $0.19.
Secondly, the MACD indicates that selling has reduced and its MAs are about to cross in the upward trajectory above the baseline. The MFI is currently at 65 thus indicating the coin is yet to become overbought with the trade volume also in the green. All these factors indicate that a drive up is likely.
Warning that XRP Could Go as Low as $0.078
Popular crypto analyst @MagicPoopCannon, warned crypto investors via twitter, that XRP might be headed for new lows as he anticipates a global recession will also affect Bitcoin and the crypto markets. In the tweet, he set a new XRP target of $0.078. The tweet can be found below.
My next major downside target for XRP is at about 0.078. Regardless of whether or not a rally emerges, I think the recession will take BTC and crypto lower, and XRP should eventually reach that target.
— MAGIC (@MagicPoopCannon) April 1, 2020
Summing it Up
As the entire crypto markets experience impressive 24-hour gains, it is worth remembering that the global economic environment has been adversely affected by the Coronavirus. Therefore, the majority, if not all of the world economies, will need some form of intervention from their respective Central banks to avert a full-blown recession. Some traders believe we are already in a recession worse than the 2008 crisis and thus all our favorite cryptocurrencies will also be affected by the economic decline.
In the case of XRP, the coin has managed to bounce back from what looked like a certain decrease in value. The coin is currently trading at $0.1766 and looks set to maintain current levels or continue on a bullish trajectory. As always, traders are advised to set appropriate stop losses to defend their various positions against losses.
(Feature image courtesy of Simon Connellan on Unsplash.)
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.
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