- Ripple price analysis shows continuing decline that initiated on March 31
- Price could move further South as 200 million XRP tokens make way into circulation
- 24-hour performance shows 11 percent deduction in trading volume
Ripple price analysis continues to show signs of receding price, as the downtrend that initiated on March 31 continues to dominate price action. Over the past 24 hours, XRP moved as low as $0.81 which is 13 percent below the March 28 high of $0.93. The token lost 11 percent in trading volume over 24 hours, and price could be in line for further detriment as 200 million XRP tokens were reported to be added to circulation according to a planned schedule on April 1. Around 1 billion tokens were unlocked, out of which 800 million were locked back in escrow accounts. Analysts predict a difficult period ahead for XRP as circulating supply increases.
The larger cryptocurrency market largely showed positive signs across the board, as Bitcoin consolidated to remain in touching distance of $46,000. Ethereum moved below $3,500 with a minor decrement, while major Altcoins showed consolidations upwards. Cardano moved up to $1.19, whereas Terra rose 1 percent up to $115. Solana and Polkadot rose 1 percent each to move up to $131 and $22.23, respectively, while Dogecoin made the biggest increment in the market, rising 14 percent to reach $0.16.
Ripple price analysis: 24-hour chart shows price movement below 100-day SMA
On the 24-hour candlestick chart for Ripple price analysis, price can be seen dropping below the crucial 100-day simple moving average over the day’s price action. Price is expected to fall further with the increase in the number of tokens in circulation, adding to the XRP eco-system’s volatility. These tokens are released in circulation to cover operational expenses and support XRP’s liquidity across different cryptocurrency exchanges. As Ripple struggles to emulate the end-March trend up to $0.9, analysts have predicted a spell on the sidelines where resistance is set at $0.93. A breakout past this point could propel the token up to highs at $1.3 and $1.7, while further bearish order would send XRP price as low as $0.7.
Technical indicators continue to support the bearish outlook for XRP, as price slips below the crucial 25 and 50-day exponential moving averages (EMAs) at $0.83. The relative strength index (RSI) also continues to recede since April 3 and sits at 50.26 to indicate declining market valuation for the token. Whereas the moving average convergence divergence (MACD) shows bearish highs after moving below the neutral zone on March 31.
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