Ripple (XRP) price has fallen 11.09% in the past 30 days, and current indicators suggest further caution. The Relative Strength Index (RSI) is at 38.93, indicating a downtrend but not yet indicating an oversold condition.
This means there may still be room for a correction in XRP to continue until strong support is found. Furthermore, Chaikin Money Flow (CMF) is positive at 0.11, but this is not reflected in the price increase, indicating that confidence in XRP is still weak.
XRP RSI is still far from oversold
The RSI for XRP is currently 38.93, indicating that the asset is trending down but is not oversold yet. Although this level has not reached extreme levels, it suggests that selling pressure is still present.
The Relative Strength Index (RSI) is a momentum indicator used to measure the speed and change of price movements. Values range from 0 to 100, with values above 70 indicating overbought conditions and values below 30 indicating the asset is oversold.
Read more: Ripple (XRP) Price Prediction 2024/2025/2030
XRP RSI. Source: TradingView
The RSI staying above the oversold threshold indicates that there may still be room for XRP price to fall further before buyers intervene.
Ripple CMF is positive, but this alone may not be enough
XRP’s Chaikin Money Flow (CMF) is currently at 0.11, indicating some positive buying pressure. However, a positive CMF reading does not necessarily mean the market is bullish. Despite being in the positive zone, this value alone does not provide enough confidence to indicate a clear upward trend.
XRP CMF. Source: TradingView
Chaikin Money Flow (CMF) is an indicator that measures the buying and selling pressure of an asset on a scale of -1 to 1. A positive CMF indicates that buying pressure is greater than selling pressure. Even though XRP’s CMF has turned positive in recent months, it has not consistently led to price increases.
Over the past few weeks, CMF measurements have turned significantly positive, but the price of XRP has been unable to soar. This suggests that holders may not still have strong confidence in XRP and a higher CMF value may be needed to cause a significant price increase.
Ripple price prediction: Possibility of 23% correction soon?
XRP price is currently trading below all EMA lines, suggesting bearish sentiment. The EMA line is sloping downward, with the short-term EMA sitting below the long-term EMA, further confirming that the downtrend is spreading.
This alignment indicates that selling pressure is predominant and there is not much strong upward momentum yet.
Read more: XRP ETF explained: What it is and how it works
XRP EMA line and support and resistance. Source: TradingView
Key resistance levels are marked at $0.56 and $0.61. For a potential bullish reversal, XRP will need to break above these resistance zones and regain positive momentum. An uptrend could emerge if XRP wins its legal battle with the SEC or the ETF is approved.
On the downside, the $0.43 and $0.40 support levels provide a safety net if the price continues to fall. This means that the XRP price could correct by 23%.
Disclaimer
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