XRP has faced resistance to its latest rally, but market watchers believe the bullish trend remains intact as the asset continues to make higher lows.
Amidst recent market fluctuations, XRP dropped by 22% from the high of $0.9380 on Jul. 13, raising investor concerns. However, acclaimed crypto analyst Predycto offers an encouraging perspective, assuring that the current dip does not yet warrant apprehension.
XRP Registering Higher Lows
In a recent analysis, Predycto pointed out a favorable trend observed with XRP on the four-hour chart. According to him, XRP continues to register “higher lows,” a positive indicator suggesting that the bullish trend remains robust.
XRP has decreased more than 10% in 2 days – should you worry?
The answer is…not yet!
XRP is still producing higher lows, meaning the bullish trend is still intact.
One thing that's worrying is that volume has been decreasing since last week!
This means that less people are… pic.twitter.com/cg4z7xjxIw
— Predycto (@predycto) July 22, 2023
A higher low occurs when the lowest price point of a given period surpasses the lowest point of the period before it. This phenomenon signifies underlying strength in the market, as buyers consistently step in to support the asset at increasingly higher price levels.
Notably, XRP slipped below the $0.70 price territory a few hours after hitting $0.9380 on Jul. 13. The asset dropped to $0.6686 on Jul. 14, marking its lowest point following the spike triggered by the ruling in the SEC lawsuit.
XRP immediately recovered from that dip and has since been observing lows higher than the lowest values in previous 4-hour candles. At the time of reporting, the latest low stands at $0.7223, representing an 8% increase from the $0.6686 low on Jul. 14.
A Decline in Volume
While the higher lows provide optimism, there is one aspect that requires vigilant attention – XRP’s trading volume. Predycto highlighted that the volume of XRP trades has declined since the previous week.
Traditionally, a surge or drop in price accompanied by high trading volume validates the market movement, indicating strong interest from investors. Conversely, decreased trading volume during price fluctuations may suggest reduced enthusiasm.
XRP’s 24-hour trade volume hit a 23-month peak of $10.4 billion on Jul. 13. However, the volume has witnessed intermittent declines since then. Despite occasional surges observed on Jul. 16 and Jul. 19, the volume has generally been on a downward slope.
A healthy bull market is often characterized by rising prices and significant trading volume, reflecting widespread investor interest and participation. On the other hand, declining trading volume amid a bullish trend may signal a possible market reversal or correction.
As a result, the drop in XRP’s volume has triggered speculation that the rally might face exhaustion. Predycto emphasized that XRP has dropped by more than 10% amid this declining trade volume over the past two days. Despite this concerning trend, the analyst remains confident.
Support Levels to Watch
However, he advises that investors remain watchful as long as XRP exceeds the critical level of $0.70. While the current market conditions do not warrant immediate panic, a drop below this level could lead to a retracement, with the price revisiting the support level at $0.60.
As of press time, XRP is changing hands at $0.7286, down 1.58% over the last 24 hours and 3.43% in the past week. However, the asset retains a 46.90% gain over the last month.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
-Advertisement-
