Rising Supply Pressure Traps XRP Price In Narrow Consolidation; Still a Good Investment?

Since last week, the XRP price has been resonating between the $0.48 and $0.44 levels creating a narrow consolidation range. The daily chart showing rejection candles on both the aforementioned levels indicates uncertainty among market participants. Thus, a breakout from either of the range levels is needed to drive a sustained rally. Here’s how buyers may retake trend control to resume a bullish recovery.

Key Points:

1. The XRP price consolidating between the $0.48 and $0.44 level can be considered a no-trading zone.
2. A resistance trendline governs the ongoing correction phase in XRP
3. The intraday trading volume in the XRP is $1.65 Billion, indicating an 8.85% gain.

Source- Tradingview

Despite the ongoing consolidation, the XRP price shows sustainability above the $0.44 support which is also a 50% Fibonacci retracement level. In theory, a retracement to the 50% FIB is considered healthy to prolong a long bull run.

However, the altcoin is currently struggling to surpass an immediate resistance of $0.48 and created a narrow price. Moreover, In the first two weeks of May, the XRP price and the overall crypto market may witness significant volatility due to upcoming macroeconomic events such as the decision on interest rates, the release of Nonfarm Payrolls (NFP), and the inflation rate.

Also Read: 15 New Cryptocurrencies To Buy In 2023

In addition, a resistance trendline is currently carrying the ongoing correction in the XRP price. Therefore, to initiate a directional move in this coin, the prices must breach either the overhead trendline or $0.44 support.

The upside breakout will signal the resumption of prior recovery and push the XRP price to $0.56.

Conversely, a breakdown below $0.44 may prolong the current correction.

Technical indicator

Relative Strength Index: Amid the current consolidation, the 4-hour RSI slope rising indicates buying pressure in the market is gradually increasing which bolsters an upside breakout from the aforementioned range.

Exponential Moving Average: The 100-and-200-day EMA moving near $0.44 also accentuates the importance of this level of maintaining a bullish outlook in XRP.

XRP Intraday Price Levels

• Spot price: $0.472
• Trend: Bullish
• Volatility: High
• Resistance level- $0.48 and $0.537
• Support level- $0.44 and $0.4