XRP Price Analysis - How high will it go?

06/02/2021

XRP’s value has plunged by nearly 40%, from the peak of $1.70. This crash has cost many investors a lot in value, but the market has been pushing the value of the coin above $1. However, the short-term chart suggested that XRP was forming a restricted range and may continue moving sideways.

At this time, XRP was trading at $0.99 and reported market capitalization of $45.96 billion.

XRP Price this week

The above chart makes it clear that the price of XRP has been trending lower since its peak. The price has consolidated on various support on its way down but has not been able to hold on. After the price dropped to $0.60, the market was retracing and the XRP value had risen within an ascending channel carrying it as close to $1 as possible.

Despite the momentum offered by the recovering market, the price was now stuck between resistance $1.05 and support $0.94. As selling pressure evolved at the current price, buying momentum was leaving the market.

Reading into Technical

The visible range indicated that the market was most active at the $0.8891 price level. This level acted as a point of resistance during the recovery, but the price was able to surpass this level and move higher. However, with stronger resistance at $1.05, the path forward appeared tougher. While the price has recently established support at $0.94, this level has also been seeing a rise in trading activity.

Low volume has been supporting this price range which could suggest that the price volatility may remain low. As the price tested resistance the last time, XRP was pushed into the overbought zone. With the emergence of selling pressure, it was sent back under the overbought zone. Nevertheless, the relative strength index has been noting that the market has remained saturated with buying pressure.

Social Vs Technical

XRP (Ripple) Social Metrics

One metric that sheds light on an opposing narrative is the social volume. Lunarcrush’s social volume chart shows a drop of 15% in the social volume of XRP over the past week.

Based on the above chart, the social volume and price are directly related. The drop in social volume corresponds to a dip, once the recovery ensues, it is likely to change. The SEC vs Ripple court proceedings have had a positive impact on the social volume, in addition to the narrative of XRP’s comeback through a price rally similar to the 2018 Bull Run.

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