XRP is seeing notable volatility at the time of writing. It started October 17 with a notable bullish push as it broke out from its seven-day high. Starting trading at $0.54, it surged to a high of $0.566 but failed to sustain the climb, resulting in a further drop after the rejections.
Currently trading below its opening price, it prints a red candle. Many fear further price declines. However, indicators suggest more price increases.
XRP Bullish Divergence
The moving average convergence divergence is printing buy signals amidst the current price change. The 12-day EMA recently intercepted the 26-day EMA, and the divergence is ongoing. This trend is also reflected on the histogram as the bars increase.
The Bollinger band shows room for more price increases. XRP has traded between the lower and middle bands since October 3. The trend started after the over 9% decline on the second day of the month. The altcoin also dropped below the lower SMA the next day.
When an asset drops below the lower Bollinger line, it is due for a change in price trajectory that may send it trading between the middle and upper bands. This change has yet to take place fully. However, it briefly surged above the mid-SMA a few hours ago but dropped below it again. This means there is a chance it may reclaim this level and start trading between the two highlighted levels.
Volume indicators like the relative strength index show fluctuating buying pressure. For example, the metric trended between 48 and 45 in the last three days. This is reminiscent of selling pressure, as the bulls appear indecisive.
This is also the trend on the accumulation and distribution chart. The buyers are struggling to fully absorb the growing excess supply.
Nonetheless, the asset is exchanging above its first pivot support. It hovered around this mark for most of the last two weeks. Price actions in the previous four days show notable efforts at edging closer to the pivot point at $0.60.
The bulls will look to reclaim the $0.58 barrier. Previous price movements show notable demand concentrations at this mark, which may guarantee a climb above the $0.60 resistance.
Ethereum Prints Third Doji
Ethereum prices over the last two days have been filled with very little volatility. For example, it started Tuesday at $2,628 and surged closer to $2,700. However, it faced massive rejections, resulting in an enormous decline, with ETH dropping to $2,536. Although it rebounded, it closed with small losses.
A similar price action happened the next day with a failed attempt at surging and a close at its opening price. The apex altcoin is seeing the same movement as it prints a doji. It shows indecisive sentiment from the bulls and bears.
Nonetheless, there are chances of an impending breakout. The latest trend started after the coin made a significant bullish push on Monday. It surged from $2,467 to $2,653, closing with gains exceeding 6%.
It is worth noting that prices were significantly stagnant for an extended period before the most recent breakout. This may also be what is playing out.
Up Or Down
There is enormous uncertainty about the next price action. Indicators point to a possible downtrend. MACD is currently printing buy signals. The current sentiment may change if the current trading volume worsens. The 12-day EMA is on an uptrend. However, its trajectory is gradually slowing down, and it may descend to intercept the 26-day EMA.
The relative strength index continues echoing what prices indicate about the sentiment between the bulls and bears. It trended within a parallel line during the last three days. The Bollinger also hints at the growing uncertainty as ETH continues between the upper and middle bands with no notable move.
