XRP Shows Interesting Price Movements as Trading Volume Increases

XLM has shown some interesting price movements over the past 24 hours, with increased trading activity catching the attention of traders.

XRP has shown some interesting price movements over the past 24 hours, with increased trading activity catching the attention of traders.

While volume is down 6%, it’s holding up better than Bitcoin, where trading volume has dropped by 37%. Recently, XRP dropped to a key support zone between $1.95 and $2.10. This level has been important in the past, and it’s holding well so far.

Crypto analyst Josh from Crypto World shared an update on XRP’s price action. According to him, XRP is showing a slight bullish bounce. This comes after an oversold signal in the RSI (Relative Strength Index), suggesting that XRP was due for a short-term relief rally. This bounce or sideways movement is expected to last for the next day or two.

What is Relative Strength Index?

The Relative Strength Index (RSI) is a technical indicator used to measure the magnitude of recent price movements to assess overbought or oversold conditions in the price of a stock or other financial instrument in the context of a given time period. RSI is a momentum indicator, and it can be applied to any security that trades in a market, such as commodities, currencies, or bonds.

It is commonly used in technical analysis to help traders decide when to enter and exit trades. RSI values range from 0 to 100. When the RSI is above 70, it is considered overbought, and when it is below 30, it is considered oversold.

However, an oversold signal isn’t a bottom signal—it just means the price needs some kind of reset in the short term. This oversold condition coincided with XRP’s price getting very close to major support, which is why the price has seen this slight bounce. The next key support level to watch is between $1.50 and $1.25, and XRP bounced from just about $1.26, just one cent away from that area.

If the short-term bounce continues, resistance is expected around the previous support zone, now acting as resistance, between $2.24 and $2.30. If XRP manages to break above $2.30, the next resistance levels are around $2.48 and $2.56.

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