XRP could enter a price correction in the next few days, here are the details.
The value of Ripple’s XRP token may decrease due to a growing discrepancy between important price chart indicators. Despite a rise in January, XRP has not regained its value of $0.5 before the FTX listing.
Currently, the asset’s value is $0.4090 and may decrease to a crucial support level.
XRP exhibited a volume and RSI divergence
The recent movements in XRP’s price have formed a symmetrical triangle pattern. Additionally, there has been a growing discrepancy between the Relative Strength Index (RSI) and the volume compared to XRP’s price during the same time period.
As a result, XRP may experience a price correction in the near future. The downward trend could lead to a bearish breakout, potentially causing a 5% decrease in value to reach $0.3780. On the other hand, if XRP experiences a bullish breakout, it could reach $0.4332 and potentially even $0.5069 if Bitcoin’s value increases above $23.5K.
The Relative Strength Index has decreased significantly since mid-January and currently stands just above 50, indicating a decrease in buying pressure. If this trend continues, bears may gain more control. However, the Directional Movement Index shows that buyers still hold some power with a score of 22, while sellers have a score of 15. It’s important to keep an eye on Bitcoin’s movements to determine the potential outcome of the patterned breakout.
Development activity improved, but sentiment remained negative.
According to Santiment data, XRP’s development activity has improved recently. The network’s developers showed reduced activity towards the end of January but have recently picked up.
This increase in development activity could reassure investors and increase confidence in the token, potentially leading to a rise in its value.
Additionally, the funding rate for XRP/USDT has remained positive since mid-January, indicating strong demand in the derivatives market. However, a negative sentiment among investors could hinder demand and limit the overall upward trend.