On May 13, the price of XRP fell below the 20-day EMA at $0.51, indicating increased selling and a bearish trend.
XRP’s MACD line below its signal and zero lines shows bearish momentum, indicating a shift from buy to sell.
Despite the negative MVRV ratio, the positive futures funding rate indicates that traders are holding long positions, signaling a buying opportunity.
The price of Ripple (XRP) rebounded to a one-month high of $0.56 on May 6. But it has since lost 9% of its value.
Although the altcoin remains at risk of falling prices in the short term, it could offer buying opportunities for traders looking to trade against the trend.
In the meantime, Ripple has little to offer
XRP is currently trading below its 20-day exponential moving average (EMA) at $0.51. The coin’s price fell below this crucial moving average on May 13, confirming an uptick in its selling by market participants.
When the price of an asset falls below its 20-day EMA, it indicates that its value is lower than its average price over the past 20 days. It is interpreted as a bearish signal and a shift in momentum from buy to sell.
Market participants view this as a sign that asset prices may start a downward trend or continue to fall.
Ripple price analysis. Source: TradingView
Additionally, XRP’s moving average convergence/divergence (MACD) reading shows that its MACD line (blue) is below both its signal (orange) and zero lines.
This indicator identifies changes in an asset's trend or momentum over a specific period of time.
Ripple price analysis. Source: TradingView
When an asset's MACD line is below its signal line and zero line, it indicates that its short-term moving average has crossed below its long-term moving average. This is a bearish signal; market participants view it as a signal to exit long positions and enter short positions.
XRP Price Prediction: Is It Time to Buy?
The market value to realized value (MVRV) ratio of XRP observed using the 30-day and 365-day moving averages is -1.3% and -9.8%, respectively. This could be a good buying opportunity for those who are looking to buy the dip and trade against the trend.
MVRV tracks the ratio between an asset's current market price and the average price of its coins or tokens in circulation. When an asset's MVRV ratio is negative in this way, it is undervalued because its current market price is lower than the average purchase price of all its circulating tokens.
This is considered a buy signal. It indicates that the asset is currently trading below its historical cost basis.
Ratio of XRP market value to realized value. Source: Santiment
Additionally, XRP’s positive funding rate on its futures markets suggests that traders continue to hold long positions despite the token’s recent price issues.
If there is a massive accumulation in XRP, the bulls might push its price above $0.53 and up to $0.57.
Ripple price analysis. Source: TradingView
However, if the current bearish trend gains momentum, the coin’s value could drop below $0.5 and trade at $0.44.
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