May 16, 2019 09:30 UTC
May 16, 2019 at 09:30 UTC
XRP Break Past the Key Resistance of $0.40, More Sell Off On The Cards
XRP, the native token of the Ripple network was facing a tough resistance at $0.30 from the start of 2019. While most of the crypto market has been bullish since the beginning of the year and gained some considerable value at their prices starting April 2nd, XRP failed to ride on the green movement of the crypto space for long.
Ripple the mainnet on which XRP works as a fuel has made significant progress in terms of worldwide adoption, the progress of the mainnet was not really reflective on the prices of XRP. However, XRP finally took off last weekend, when BTC soared past $8,000.
XRP broke past the key resistance level of $0,30 to peak above $0,40 for a short period of time, which was brought down to $0,35 due to a market correction. However, XRP finally looked bullish and broke past the $0,40 mark to trade at around $0.444. The next key resistance for the token is $0.50. In the last week, XRP has added 50% to its total token value, which also happens to be highest in the top-20 cryptocurrency.
More Sell-Off on The Cards
Looking at the technical side of the recent rally, the intraday picture suggests that XRP has more sell-off on the cards. The Relative Strength Index (RSI) suggest downward movement which means the market has not really seen the complete price correction yet. The next key resistance could be at $0.4178. The critical resistance is at $0.4945.
If the market correction and sell-off come into the picture, XRP might slide down below the $0.40 mark and again see the likes of $0.3866. While the majority of the market has been bullish, XRP’s late tractions could see the token become more bullish once the psychological barrier of $0.50 is broken.
Probable Causes of XRP Surge
While many were puzzled over the price behavior of XRP as even during the strongest of price rallies, XRP failed to move past the key resistance of $0,30. However, XRP proponents believed that it is just a matter of time before XRP prices pick up and show the bullish trends just like its peers.
The recent release of the xCurrent update 4.0 along with numerous Ripple partnerships with various commercial and central banks are being speculated to be the catalyst in XRP’s recent movement.