Ripple’s XRP started a price surge on Sunday which saw the digital currency spike over 15% in three days. The price has since begun to retrace but is still in a far more bullish situation than last week.
Last week, the price of XRP traded in a range on low volume and had some key resistance above the range from $0.49 resistance point and the 200 EMA. The 22% spike in price managed to bring XRP above these levels, and these may act as support if the retracement continues. The retracement is on low volume so far which shows there may be little strength behind it. Many other cryptocurrencies are also performing well giving a generally positive sentiment in the market.
The price action yesterday for XRP formed a bearish divergence on the hourly. Price was forming a higher high while the RSI formed a lower high showing price increasing despite falling buying pressure.
How the pattern played out shows the danger of trading this pattern without risk management procedures or without further information. The price went on to increase almost another 7% since the pattern formed. Price has since started to retrace and trades around $0.53.
- XRP surged 22% over the course of three days.
- A bearish divergence formed on the hourly but price increased another 7% after the pattern formed.
- Price has since started to retrace from highs, but there is a generally bullish sentiment to the market currently.
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