The post Here’s Why You Should Be Bullish on XRP Even As It Struggles at $2 appeared first on Coinpedia Fintech News
With less than a few days left until the 2024 end, the markets are facing a major volatility issue as the buyers remain passive. As a result, the volume has dropped to a large extent, indicating the sluggish behaviour of the market participants due to uncertainty circulating around major tokens like Bitcoin, Ethereum, XRP, etc., and many more. While Ripple is expanding its network, the XRP price is believed to have a positive impact. Meanwhile, the current trade setup and the market sentiments raise serious concerns over the upcoming price action.
The broader market sentiments are neutral at the moment, as the lack of bullish strength has paved the way for the bears to mount some upward pressure. The drop in the price has been supported by the rise in the volume, suggesting the market participants could be panic selling as the token reaches beyond the 2021 highs after remaining sluggish for a long time. Therefore, the lower targets have been activated, as the price is expected to reach $1.88 if the token fails to defend the crucial support at $2.
The short-term price action of XRP suggests the token is primed for a major bearish action ahead of the yearly close. The stochastic RSI has been displaying a consistent trend, suggesting a drop in the token’s volatility. Besides, the MACD remains within the negative range without a rise in either bullish or bearish pressure. As the volume remains lower, there could be a fewer possibility of a breakout. Therefore, the XRP price may eventually reach the ascending support line at $2 after undergoing a small rise to $2.1.
Additionally, the long-term price action also remains bearish, as the MACD suggests a drop in the buying pressure in the weekly chart. However, the rally appears to be reaching the lower support of the bull flag pennant, indicating a huge possibility of a rebound. Secondly, the RSI remains within the overbought range suggesting the bullish trend to prevail for a long time ahead.
Therefore, if the XRP price sustains within the bullish pennant, a rebound may be initiated with the beginning of the fresh yearly trade. This could further pave the way for the token to march towards the higher targets in the coming days.