Ripple (XRP) today displays signs of upward momentum with a recent spike in price action. Nonetheless, XRP remains under the influence of overall market volatility, resulting in a bear trend on higher timeframes.
For the last week, XRP has gone down by 4.55%, while in the last thirty days, the value has fallen by 8.52%, which reflects prevalent market uncertainty.
Currently, the XRP coin is priced at $2.16, with a 24-hour volume of $3.36 billion and a market capitalization of $126.44 billion. It has gained 8.20% in the past 24 hours, indicating short-term stability and a possibility of sustained upward movement.
The crypto expert explained that XRP is exhibiting initial signs of a short-term bounce. This came after a recent liquidity sweep that cleaned out major downside levels.
The digital asset, which had earlier been bogged down by a bear head-and-shoulders (H/S) configuration, appears to be recovering.
But experts caution that the overall trend remains bearish, characterized by decreasing highs and lows. One should be warned, as the long-term structure still depicts a bearish direction.
$2.40 key level for XRP breakout battle
The point of control (POC) is a key technical indicator in trading. It represents the price level where the highest volume of trading has historically taken place. This level often acts as a strong area of support or resistance in the market.
Price action indicates that XRP may be heading towards a key POC zone, which is closely aligned with a descending trend line. This confluence could act as both resistance and a magnet for the price. Traders should watch for potential reactions at this level, as it could dictate the next move for XRP.
Despite that, traders should remain cautious. The underlying structure of the market has not convincingly moved yet, with lower highs and lower lows still ruling the chart. Consequently, although a short-term ranging play may be seen, it does not necessarily validate a macro turn.
In the event of sustained bullish momentum, attention will be focused on the $2.40 level, a level that not only coincides with the POC but is also just below the declining trendline of resistance, thus a likely spot of interest for both bulls and bears.
