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XRP is experiencing a significant decline at the time of writing as its upward momentum faded. It saw notable rejection at $1.95, leading to the ongoing downturn.
The asset ended the previous week down almost 3%. However, ths does not convey what transpired during that period. The altcoin retraced to a low of $1.77 before rebounding. On Friday, it registered one of its biggest surges, gaining almost 6%.
Nonetheless, it has been on a downtrend for almost two weeks before the pullback. The 1-week chart shows the asset marked its third consecutive week of decline last week and may be heading for a fourth.
Price action during this period resulted in investors losing interest in the asset. As a result, selling continues, with prices plummeting in response.
However, reactions on social media platforms broadly differ from what the seller expects. Many proponents remain hopeful of a massive rally before the year ends, while a few remain skeptical.
BIGG COLE’s comment on the ongoing action conveyed the idea of many sellers at the time of writing. He presented a chart indicating an impending rally, followed by a massive retracement. While some agreed, others rebutted, saying the painted scenario is impossible.
However, comments like those from the earlier-stated account are among a multitude of similar bearish opinions. Santiment noted that XRP is experiencing far more negative social media commentary than average.
The latest shift in sentiment affecting the altcoin may lead to further declines. Nonetheless, prices will rebound afterward. Santiment stated that such negative commentary is a setup that leads to massive price surges.
Additionally, the platform noted that retailers are driving the current decline. When this group believes a surge is less likely, the whales may resume quiet accumulation, causing a rebound and subsequent recovery.
Amid the price decline, several other sectors remain primarily positive. One such is ETFs. Data from SoSovalue shows that investors continue buying the XRP exchange-traded fund without letup. As of the time of writing, the investment funds tied to the coin have not registered any day with significant outflows.
The intense buying pressure in ETFs may contribute to massive price increases in the coming days. Nonetheless, indicators are already shaping up for such rallies. The moving average convergence divergence had a bearish crossover a few days ago. A reversal is underway as the metric edges closer to a bullish crossover.
Aside from MACD, the bollinger bands hint at the asset resuming its uptrend amid the ongoing decline. XRP is currently trading below the middle band after its recent breakout. Previous price movements suggest that almost every rebound after a slip from the lower band ends after breaking above the SMA. The coin is yet to break it, hinting at further uptrend.
However, the middle band is currently at $2. Currently trading at $1.89, the odds of flipping the key level this week remain slim. The asset must first break above the $1.95 resistance to guarantee the test.
It is worth noting that the latest price hike ended at $1.48. Data from Coinglass indicates a large liquidation cluster at this mark. As a result, the altcoin may struggle to break the barrier as the bears will stage selling congestion at the mark.
The post XRP Just Flashed a Fire Buy Signal. What is it and How Will Price React? appeared first on CoinTab News.
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