XRP has been following Bitcoin’s trails and hopped during the past two days. Today, the digital asset has experienced what is known as a ‘fakeout’ which occurs when an asset abruptly goes in one direction and recovers within a few hours.
XRP briefly broke below $0.22 before the bulls managed to bring the cryptocurrency back up to $0.223 within 2 hours. The bulls are now looking to break above $0.23 which could lead to a bigger and healthier bounce. The 4-hour chart is quite indecisive and keeps shifting between an uptrend and a downtrend.
Similarly, the hourly chart is quite erratic with really long wicks. Smaller time frame charts can often be unreliable during periods of high volatility.
Current General Sentiment About XRP
It seems that the general sentiment is quite positive, especially after a few good news coming from Ripple, the company behind XRP. Ripple has finalized its $50 million dollar investment into MoneyGram recently and has extended its UK TransferGo partnership.
According to CoinFairValue, the fair value of XRP is indeed around $1. The platform calculates the fair value of cryptocurrencies based on the current usage of each coin. The official website states: ‘’We leave speculation to investors.’’
NewsBTC’s Aayush Jindal has a positive outlook on the short term of XRP. According to his technical analysis, the digital asset is showing peremptory signs and could break above the resistance at $0.235.
Can XRP Keep Up The Pace?
Although the recent bounce has been a positive sign for XRP, the trading volume has dropped significantly in the past two days. The RSI continues to be in the oversold area at around 28 points, a level not seen since August 2019.
The weekly chart is still concerning for XRP investors as the recent bounce does not neglect the current bear flag. The RSI here is at the lowest level since August 2018 when XRP saw a huge surge of around 103% a few weeks later.
Good news coming out from Ripple combined with an overheated RSI could help XRP tremendously but only if the bulls are able to take advantage of it.
Do you think XRP has enough momentum to shift towards a bull run?