XRP 20% Surge Puts Asset in Dangerous Position
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Arman Shirinyan XRP hitting oversold levels, which can create some problems for asset Cover image via www.freepik.com Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. XRP has recently caught the attention of traders and analysts alike with its impressive 20% surge. However, a deeper dive into the asset’s technical indicators suggests that this rally may be treading on thin ice. One of the most telling signs of potential trouble is the Relative Strength Index (RSI). The RSI is a momentum oscillator that measures the speed and change of price movements. Traditionally, an RSI reading above 70 is considered to be in “overbought” territory, indicating that the asset might be overvalued and could be due for a price correction. As of recent data, XRP’s RSI has entered the oversold zone, signaling that the cryptocurrency might be overextended and could face downward pressure. Source: TradingView In addition to the RSI, another worrying sign is the descending volume. Even as the price of XRP surged, the trading volume has been on a decline. This divergence between rising prices and falling volumes is often considered a bearish signal in technical analysis. A rally backed by decreasing volume might indicate a lack of strong conviction among traders, and such rallies are often unsustainable in the longer term. Lastly, the resistance level at $0.63 presents a significant hurdle for XRP. In technical analysis, resistance levels…
Filed under: News - @ November 2, 2023 1:12 am