Ripple Technical Analysis: XRP Inevitably Drops After Reaching Nearly $0.80
Daily Ripple XRP Price Analysis
- Ripple price dropped by nearly 43% after reaching $0.80.
- RSI has dipped back into the neutral area from the overbought zone.
Over the last four days, the XRP community has been imitating the Wall Street Bets groups in pumping the Ripple price up to as much as possible. In the previous three days, $0.25 to $0.49, flipping the 20-day, 50-day, and 200-day SMAs from resistance to support.
Ripple Price Bounces To 2-Month High And Drops
Today, the Ripple price jumped up to $0.77, which is the highest it has trending at since November 24. However, since then, it has dropped by nearly 45% and is currently priced at around $0.43.
Image: XRP/USD daily
Due to this drop in Ripple price, the relative strength index (RSI) has dipped from the overbought zone to the neutral zone. This shows that the asset is no longer overvalued. Plus, the 20-day SMA is on the course of crossing over the 200-day SMA to chart the bullish cross pattern.
Now, when we look at the 4-hour price chart, we can see that XR had already flashed the red-nine candlestick in the TD sequential indicator. It seems like the 20-bar SMA in this timeframe has stopped the further degradation of Ripple price.
Image: XRP/USD daily
As a result of this negative Ripple price movement, the moving average convergence/divergence (MACD) shows that the market momentum is becoming less bullish over time.
XRP Social Media Interest At Its Highest Since September 2018
Social media interest related to XRP is at its highest since 221st September 2018, according to Santiment. On that date, XRP surged from $0.32 to $0.77 over 24 hours. An excerpt from Santiment’s report states:
$XRP broke out to a high of +62% on the day (~$0.47) before retracing back to a now still 5-week high of $0.39. Our social volume metrics note that this gain in interest was the highest since Sep. 21, 2018, when $XRP surged from $0.32 to $0.77 in a day.
XRP’s resurgence in the crypto markets is widely attributed to the WallStreetBets Crypto community deciding to buy the asset. WallStreetBets now has a crypto community on Telegram known as SatoshiStreetBets. This is where the idea and execution of purchasing XRP were agreed upon.
The increased interest in XRP has also resulted in a significant increase in new account activations. According to XRPScan.com, 7,618 new XRP accounts were created on January 30th alone.
Ripple Price Is Expected To Reach These Levels
The 20-bar SMA ($0.42) in the 4-hour chart needs to hold firm to prevent the Ripple price from dropping below the $0.40 psychological level.