The cryptocurrency market broke out of the long crypto-winter that restricted the price of most major assets between their immediate resistance and support. However, for the third-largest digital asset, XRP, this sudden boost was much-awaited since February 2020. As XRP bounced between $0.2141 and $0.1701, the market had reached a low point, even as investors’ returns were in single digit in YTD. However, the boost provided by the market towards the end of June changed the trend for XRP and it was reporting gains of 64.78% in YTD.
As the coin marches higher, it has been forming part of a bearish trend that could lead to the coin’s breakdown once again.
Source: XRP/USD on TradingView
According to the 4-hour chart of XRP, the value of the asset has been escalating since end of July. This pumping price formed higher highs almost every day. Whereas a sudden boost in the Bitcoin market also pumped XRP’s price on 2 August, followed by an immediate correction. As the digital asset traded at $0.3061, at press time, an uptrend along higher lows had been formed, which has been acting as a support for XRP. If the asset dips below this extended support, it would confirm the bearishness of the XRP market.
Meanwhile, an ascending channel has been spotted along higher highs and higher lows, which was also a bearish pattern. As the price rose along the channel, a breakdown of XRP seems imminent. Currently, Bollinger Bands diverged; the signal line aligned under the candles, suggesting an uptrend in the asset’s price.
XRP remained close to the overbought zone and may experience selling pressure to bring it back to the state of equilibrium.
Source: XRP/USD on TradingView
If XRP fails to hold onto its current level, the next target for the price will be at $0.2934, as per VPVR. $0.2934, was the next highly traded price point for XRP, and if the coin dips, this could act as strong support. However, failure to hold on to this price point could cause XRP to reach $0.2421.
Thus, the price of the third-largest digital asset, XRP, may be challenged in the coming days. The important price points for the coin remained $0.2934, and $0.2421, acting as current supports.
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