Ripple recently reached a new all-time high. Then the currency became increasingly volatile, which is usually a sign that a strong move is coming. Will this result in a rise, or will XRP fall to its next support around $2.80?
How is XRP doing?
To analyze this, let’s first look at Ripple’s daily chart. Here each candle represents a 24-hour period, so we can see a large part of the price history. In this way, a large price level becomes clear that has often influenced the price.
This can be seen above as a blue zone. This zone has its origins in a previous high point. And what usually applies to these places is that they are then used again as support or resistance. This is also the case with this zone of Ripple.
The coin initially had difficulty getting past this. Buyers pushed the price back when it reached $1.90. It was therefore plausible that – if the price broke this zone – it would have a positive effect on the rest of the price development.
On December 1, the time had finally come and XRP shot through this price level with force. The currency then reached an all-time high, and the price became less and less volatile. This brings us to the current situation: XRP is moving less and less volatile, which often means a bigger move is coming.
-What now?
To analyze this further, let’s also take a look at the 4-hour chart of XRP. Here each candle represents 4 hours so we can see the chart in more detail. There are two more price levels that influence the price in the short term: the green line and the upper blue zone.
If a larger movement is coming, and it will turn out negative, it is important that the price remains above these two levels. A break can cause more bearish price action. In the longer term, the coin still moves in an upward trend (where the coin makes higher and higher highs and higher and higher lows).
To maintain this, the currency must not fall below a previous low. It is therefore good to keep an eye on the graph and these price levels.
In addition, it is good to know that this ‘bigger’ movement can also have a positive outcome. When the price shoots up, it is important that the coin returns past its all-time high. This would mean that the upward trend will continue. Until then, we will have to wait and see what XRP will do after these less volatile movements, because the danger of a decline remains present.
