XRP Price Analysis: 3 May

XRP Price Analysis: 3 May

The XRP market has seen increased volatility. Although the digital asset managed to surpass $1 in April, volatility from the Bitcoin and Ethereum market impacted XRP, pushing the asset under the 1$ level on multiple occasions. However, since 25 April, XRP has not dropped to this level and has surged by 60%.

At press time, XRP was trading at $1.59 with a market capitalization of $72.95 billion.

XRP 4-hour chart

The XRP chart above noted the period of volatility in the market highlighted by the bulged Bollinger Bands with only minor periods of low volatility where the bands converged. Given the high volatility in the market, XRP may be preparing for another correction.

Reasoning

Bollinger Bands have been indicating periods of high volatility in the market. However, at the time of press, Bollinger bands were converging. These periods of convergence have been followed by a drastic price swing in the past and we may see this trend repeat. The impact of the price swing could be lower on the charts. The signal line has been crossing over the candlesticks indicating the price trending lower.

Meanwhile, buying pressure was also dropping as relative strength index returned from the overbought zone. However, it has remained close to the overbought zone, suggesting the selling pressure was growing gradually. Awesome oscillator noted that the price momentum has already moved to the bearish zone.

Crucial level

Entry-level: $1.59Take profit: $1.50Stop-level: $1.63Risk to Reward: 1.78

Conclusion

The current XRP chart has been noting that the digital asset has been volatile for a while now. The brief escape it was witnessing currently, might be followed by a plunge in the price as the selling pressure evolves. This drop could push XRP to test support at $1.50, after which it may continue to consolidate.

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