XRP has revolutionized the cryptocurrency world, taking advantage of the power of blockchain. The only difference is the use of consensus protocol to validate a transaction instead of blockchain mining. As a result, price action on XRP has mostly been on the bullish side, but we have witnessed some major profit bookings each time XRP closed towards a fresh high.
After the May 2021 sell-off, XRP gained some traction by the end of July and reached above the $1.40 level by the starting of September 2021. But profit-booking started at higher valuations driving the XRP value to under $1, losing close to 40% of its value in a matter of weeks.
Despite the ups and downs, XRP has held the 6th position in terms of market capitalization and stands at a circulating valuation of $51.35 billion. This valuation is based on the circulating supply of XRP cryptocurrency, which is merely at 46.81% of its total supply.
XRP Price Analysis
The Ripple price analysis action resembles a sell of the rise and buys on dip being applied to the same digital asset. XRP has developed a strong buying support at $0.8744 levels and resistance at $1.25 levels.
XRP price has taken a 40% jump in the last two weeks reaching from $0.875 to $1.25 levels, but at the same time, the sudden profit bookings have damaged the sentiment across this cryptocurrency asset. Its extended support can be taken as the three-month low value of $0.5112. Rising valuation in tandem with the rising 200 DMA curve has helped develop a buying sentiment across the XRP investors.
RSI indicator has tanked in the last few days after a steady recovery, and MACD also indicates a possible sell-off back to under $1 valuation. There are a lot of developments on the surface level, but price momentum so far has been a weaker aspect of XRP. For the near term, the 200 DMA of $1.00 will be instrumental support and will be a deciding factor for the price to rise or fall in the coming days.
While support has risen, so has the resistance taken up the pace, and we are staring at a substantial consolidation of sudden breakout kind of movement in between $1.25 to $1.45 in the coming days.
