XRP Price Analysis: XRP/USD Trading Around the Bargain Buying Zone
- Ripple’s XRP bulls are sleeping within consolidation mode, as price action immensely narrows, ahead of the next fully committed direction.
- XRP/USD is trading just above a big bargain area, where buyers tend to be drawn in. Interest is likely to be growing given the recent stability.
XRP: Recent Price Behavior
The XRP/USD price continues to be stuck in a narrow trading range, as has been the case since 27th February. The price has failed to find any commitment since taking a beating on 24th February; the life was taken out of the bulls during that hard fall. XRP was on a decent run to the north again, demonstrating signs of a recovery after bottoming at the back-end of January. The price was forced to seek some comfort from the big buying area in the $0.3000-$0.2500 price range.
Furthermore, a decent push higher started to take place, as XRP/USD gained over 25% and pushed up at $0.3550, which is the current high for 2019. Bulls struggled to break down this area of $0.3500-$0.3600, which resulted in massive sellers coming back into play. The price had already struggled to get back above this region between 11-19th January. It had not traded above this zone since 10th January, when big sellers kicked in after touching the $0.4000 territory.
Lack of Upside Momentum
The price at present has found itself wedged between two great acting zones. Resistance to the upside is capped at the $0.3300-$0.3500 range. To the downside as noted earlier, big buyers come into play from $0.3000-$0.2500. During this prolonged period of consolidation, price action has been forced to narrow and move within the confinements of a triangular pattern structure. On 15th March, the XRP/USD bulls managed to push a small breakout to the upside, resulting in a closure above the acting trend line of resistance.
XRP bulls, however, failed to pick up momentum to the upside following the escape. Over the last few sessions, the price has just consolidated further, using the lower ascending trend line as support. Positive fundamental news flow doesn’t appear to be having much of an impact either. Recently, Coinbase announced its support for XRP on its platforms. Binance’s Trust Wallet added this availability for their users; however, the price continues to be unresponsive.
Perhaps markets are still waiting for this never-coming SEC affirmation that XRP is not a security, which was heavily a focus across the community in 2018. Fundamental factors aside, the price continues to trade around a huge buying area. Given the bottom area near $0.3000 proving to be somewhat stable, these levels remain attractive. Lastly, providing the bottom for the year continues to hold its course, the bull case should start to rise.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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