Ripple (XRP) has been trading within a specific range in the past month. Over the last two months, it formed a smaller range and showed no signs of breaking out. Technical indicators suggest the cryptocurrency’s price might bounce from the $0.514 level. Let’s take a closer look at Ripple!
Bitcoin’s Impact on XRP
The popular altcoin dropped by 14.6% on June 7, following a 10% rise from its lowest levels, signaling a potential sudden movement. What can investors expect from the altcoin next?
The two-month range rose from $0.47 to $0.56. The mid-range level of $0.514 served as support earlier this week, but Bitcoin’s (BTC) drop on Friday also pulled XRP down. This reversed the lower time frame structure downward.
OBV has been on a downtrend since April. It attempted to recover in May but fell to lower levels in the past ten days. This data revealed that despite XRP being above the mid-level of the short-term range, buying pressure remained weak.
Current Data on XRP
The daily relative strength index (RSI) was also below the neutral 50, signaling a continued downtrend. Combined with the loss of the psychological $0.5 region, this could cause XRP to drop to $0.45. The price action chart and technical indicators signaled a downtrend. On the other hand, the liquidation chart might indicate that investors could want to trade against the downtrend.
Additionally, liquidity dropping to $0.45 in the cryptocurrency caused investor losses. The next major liquidity cluster is at $0.58, the mid-range of the 10-month range. Therefore, according to cryptocurrency experts, XRP might rise to $0.58 in June before another rejection.
