In the last seven days, Ripple (XRP) has singled itself out from the trend displayed by the broader crypto market. For assets in the top 10 as per market capitalization, it has been a season of consolidation and downturns.
However, the token performance decoupled from Bitcoin (BTC), as it registered a 12.29% hike, CoinMarketCap revealed. Interestingly, this was a milestone it has struggled to reach in almost 90 days.
The significant price movement indicates renewed interest in the token and buying pressure. And if continued, it could lead to further upward momentum. But the question is— are bulls committed to this cause?
From the technical perspective, there seems to be a strong buying pressure that has triggered the price increase, based on the Directional Movement Index (DMI). As of this writing, the +DMI (green) was 33.61. Its opposite number, the -DMI (red), was 12.84.
On the other hand, the Average Directional Index (ADX) was 20.64. The ADX (yellow) acts as a measure of the directional strength of a cryptocurrency. When the value hits 25 or above, it means that there is solid support behind a movement.
But if the indicator trends below the value mentioned, it implies a weak directional strength. So, as it stands, XRP buyers may have slowed down the initial pressure that brought about the hike in price.
Meanwhile, it is also important to note that the bullish divergence caused by the lower lows from $0.48 to $0.41 also had an effect on the mild rally. The failure to reach a new low demonstrated bears’ loss of control and the bulls’ authority claim.
Furthermore, the Bollinger Bands indicated that XRP’s volatility had reached an extremely high level. But there was another thing of note— the price at the time of writing had touched the upper band.
When this happens, it reflects how the token has reached an overbought level. However, if the price touches the lower band, it means that the token had reached an oversold level. But since the former was the case, there could be a chance of an XRP price reversal.
In addition, XRP’s recent rise has had some influence apart from the technical outlook. One notable macro factor that has impacted the price is the long-standing case with the U.S. SEC. And of course, whale accumulation.
Lately, the XRP community has shown confidence in a victory. Besides, there was speculation that the court case could end soon in Ripple’s favor after a recent interview with CEO Brad Garlinghouse.
Concerning XRP’s short-term price, the rally has a tendency to continue. However, market participants should be wary of buying action, as bulls may begin to take profit.
