XRP Price Analysis: Has the asset returned to its glory days?
The XRP coin, the fourth-largest cryptocurrency by market capitalization and arguably one of the few cryptocurrencies to end the previous year 2020 on a bearish note, is currently booming. Does that mean it`s going back to its glory days?
Ripple Moves from “weak” hands to “strong” ones
XRP’s problems were announced back in December, when the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple, accusing the company of selling and distributing about $ 1.3 billion worth of cryptocurrency.
The lawsuit has led to a decline in the price of XRP by more than 50% with constant temporary fluctuations that seem to push the asset into the abyss. This decline was further compounded by the delisting of major cryptocurrency exchanges. But XRP appears to be back on track with gains that eroded past weeks ‘ losses.
XRP, according to CoinMarketCap, is trading at $ 0.2859 with an increase of 7% over the past 24 hours. Given the current yield of the coin, it is still a few figures away from fully compensating for the 39.5% losses recorded over the past 30 days, as it has grown by 30.3% over the past seven days.
The XRP token, which was recently shunned by investors, is now gradually gaining the admiration of many. Many have already bought XRP.
It is expected that each lawsuit against a crypto project will indicate both an influx of new investors and an outflow of existing ones. Analysts believe that a price correction for top coins, such as Bitcoin, could lead to the cryptocurrency moving from weak hands to strong ones, as in the case of XRP.
The scam via Twitter comments confirmed this view, with XRP user Cryptowolf noting that his only regret is not buying more XRP. Many other traders and investors also share this view.
Those who stayed with the crypto asset by buying the dip are currently increasing their assets by 30%. Although the price forecast looks optimistic, a look at the technical specifications can help to better understand the price dynamics.
XRP Price Analysis
XRP Price Analysis
The XRP / USD price chart on TradingView is at best described as an M-shaped candle movement, signaling the undulating movement of the XRP coin this year. Torn apart by the SEC’s lawsuit, XRP bears are constantly pushing the price to break the $ 0.4 resistance level. However, the current XRP RSI of 51% shows the balance between buyers and sellers in the market.
The Fisher Transform indicator, which crossed the signal line on Monday, January 11, is bullish, and complements the long-term moving average, which currently has an uptrend.
From these indicators, it is clear that XRP is gradually gaining momentum to match its peers such as Bitcoin (BTC) and Ethereum (ETH), and further strengthen its position as the fourth largest cryptocurrency.