XRP, one of the prominent names in the cryptocurrency landscape, is currently undergoing a significant market test.
As of recent data retrieved by Finbold on October 13, the digital currency XRP is trading at $0.480887, showing a decline of 8% in the last week.
With its current state teetering close to the support level of $0.45522, many investors and market enthusiasts are closely watching to see if XRP can rally and challenge resistance level at $0.50917.
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This support level becomes even more critical when considering XRP’s performance over the past year. Despite the broader market turbulence and the immense volatility faced by the crypto sector, XRP has managed to increase its value by 7% in the last 12 months. This resilient performance has enabled it to outperform 72% of the top 100 cryptocurrency assets.
A point of concern for traders might be XRP’s current position below the 200-day simple moving average, which often serves as a metric for long-term market sentiment.
Furthermore, the token’s price chart has been predominantly red, with only 13 green days recorded in the past 30 days, constituting a mere 43% of bullish days.
Bullish divergence
Despite the bleak short-term outlook, chart analyst Jay Dee recently took to Twitter to shed some optimism on XRP’s trajectory. He emphasized the importance of patience and the need to filter out the noise from often irrelevant news surrounding the crypto space. Dee pointed out, “Though short term may look scary (even w/all these irrelevant news 🤦♂️), the weekly chart still creating ‘Hidden Bullish Divergence’ on RSI/SRSI.”
In layman’s terms, this bullish divergence on the Relative Strength Index (RSI) and the Stochastic RSI (SRSI) indicates that while prices are declining or remaining stable, the momentum behind the coin is building up. This could potentially forecast a bullish turnaround.
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