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The price of the third-largest company, XRP, has risen by about 500% in recent weeks, but it appears to be reaching a local peak. XRP might not stop adjusting there and ultimately find a stop to the recent negative trend, especially lower than the present level of $2.26, even though it is in line with the performance of the larger cryptocurrency market.
Specifically, the Bollinger Bands gave a clue to such a development. John Bolinger created a widely used indicator that is a basic moving average with two movements above and below the holy line, defining a range. The price of XRP is currently at the top band, with a median of $1.
XRP Price May Drop
It's a long way. The price finally hit the median in the next weeks, and the last time this occurred was in 2021. The current situation is more comparable to what XRP fans witnessed in 2018. The median was $0.72 at the time, while the price of the well-known cryptocurrency was $3.3, which is actually an all-time high for XRP.
The price of XRP dropped more than 82% over the next four weeks, reaching as low as $0.5627, and then began a three-year buildup. Even after the median was reached in 2021, the cryptocurrency's price actually dropped below it, and the gap between the bands grew smaller once more.
Although it is not sure, historical patterns for XRP suggest that such a scenario can occur again. For this reason, it is crucial to avoid causing the token's illusion to cloud judgment and possibly steal some of the gains from the most recent wild rally.
XRP Hits Strong Support Level
XRP is currently testing the 26 EMA, a significant support level that may determine the coin's short-term direction. After weeks of volatile price movement, XRP is currently trading near $2.28 at a crucial point. The 26 EMA has traditionally been an active support level during XRP's bullish trends, and it can serve as a base for further gains.
It serves the same purpose in the current market climate because XRP shows maintaining traits after a notable loss. This level is particularly important since it represents the balance between short-term market emotion and long-term momentum. A recovery from the 26 EMA could open the door for XRP, which may be seeking to retest the recent highs around $2.60.
If the 26 EMA is not held, XRP might see further drastic corrections, potentially aiming for the next support around $2.15 or lower. Volume research shows a fairly stable trading environment, suggesting that the market is waiting for a final move. Neither extreme nor oversold situations are suggested because the RSI is now within a neutral area.
