XRP had one of its biggest surges on Saturday. It started the session at $0.89 and surged as buying pressure picked up. It recovered from a slight decline and continued upwards until it regained its $1 status.
The altcoin continued its climb until it faced strong rejections as it edged closer to $1.30. It retraced and dropped to a close at $1.12. Nonetheless, it gained over 25% during this period.
The uptick comes barely after the asset gained 15%. It broke above $0.90 after opening trading at $0.80. A similar price movement happened, with the coin peaking at $0.84.
Trading action during the previous week mainly was bullish. The altcoin gained a whopping 78%, almost doubling in worth. The question of why it saw such massive increases remains hanging. Nonetheless, fundamentals played a considerable role.
Shawn Oroogle, a World Economic Forum participant, recently raised awareness of speculation that XRP, Hedera (HBAR), and Goldman Sachs would announce an association.
Hoskinson recently called Ripple CEO Brad Garlinghouse a “great CEO” and described their relationship as “extremely collaborative” in a post on X (previously Twitter). This public discussion has stoked the idea that Cardano and Ripple would consider a strategic alliance.
Rumors of the Ripple CEO meeting with the United States President-elect were primarily responsible for the massive increase in value last week. The XRP army believed Brad Garlinghouse would present a deal to advance the coin.
However, the fundamentals are wearing out at the time of writing as the asset grapples with increasing selling pressure.
XRP may Drop Below $1
Price actions over the last 48 hours show growing bearish sentiment among traders. For example, it closed Sunday with losses of almost 6%, dipping to a low of $1. It attempted to resume the surge on Monday with limited success. It peaked at $1.18 but retraced due to massive rejections. Nonetheless, it gained over 5%.
The bears are back in control at the time of writing. It started the day at $1.11 and peaked at $1.14. However, it retraced to a low of $1.06. The constant retesting of the $1 over the last three days shows growing pressure on the mark.
The indicators do not show an impending change in trajectory. The one-day chart hints at the downtrend worsening. The altcoin became overbought on Nov. 10 following the relative strength index breakout above 70. A few days later, the RSI peaked at 93. Currently at 81, the bulls are gradually losing their grip on dominance.
The asset’s overbought status spreads fears of an impending massive decline. This may be accurate, as the asset is due for corrections.
The downtrend may be worse than many anticipate as XRP is also overbought on the one-week chart. It attained this status last week. However, it is worth noting that the last time the coin had such an event, it experienced a massive decline.
RSI broke above 70 in the week starting July 10 but started declining during the following week. The downtrend continued over the next three weeks before a small break. Over the next five weeks, the downhill movement resumed, losing over 40%.
Repeating this event will result in XRP losing the $1 barrier. It will dip below $0.90 with a slight chance of rebounding at $0.80. It remains to be seen how the price will perform in the coming. Nonetheless, indicators hint at the bears edging.
The Bollinger bands support the claims of a massive downhill movement. The altcoin surged above the metric on Nov. 10 and has since continued above it. Although trading below it at the time of writing, it is close to and will flip at the slightest surge. Based on this indicator, it risks a massive drop to $0.70.
