XRP Back on the Groove? Up 5% After Friday’s Crash

XRP, the seventh largest digital asset by market capitalization, witnessed a monumental crash in the altcoin’s price on Friday. The cryptocurrency fell from the $0.44 price level to $0.38, indicating a 11% decline in valuation. However, XRP holders saw a slight recovery as Saturday’s candle opened.

According to the data from CoinMarketCap, the trading volume of XRP dropped 36.81% as sellers were done dumping their holdings and currently stands at $1.3 billion. Meanwhile, the market capitalization of the altcoin is $23.8 billion, with the token being 88.85% down from its all-time high of $3.84 seen in 2018.

XRP bull, “JacktheRippler” stated on platform X (previously known as Twitter) that the altcoin is about to breakout after its “final shakeout” in the past few weeks. The analyst highlighted a slight uptrend being formed in the XRPUSDT price action. In a shared chart, the analyst predicted a bullish breakout for the cryptocurrency.

After dropping as low as $0.38 on Friday, XRP opened the daily candle for Saturday at a price of $0.4252. The buying volumes were low, suggesting that the price surge may not be sustainable. In the past seven days, the digital asset has crashed 9.48%, with an 18.20% decline in the last month.

The Relative Strength Index (RSI) for XRP reads a value of 28.58, confirming that the price trajectory has entered the oversold region. The gradient of the line suggests a slightly bullish move. While the cryptocurrency reclaimed the $0.40 price level, it needs to hold above this to sustain a move towards $0.5.

The price action dropped from the lower region of Bollinger Brands. Currently situated in the lower region of the Bands, the indicator has expanded, suggesting increased volatility. It is important to note that with the American fintech firm Ripple running trials with Nasdaq, the second-largest stock exchange in the world, the possibility of XRP forming an uptrend is high. Also, the resolution of the lawsuit between the firm and the Securities and Exchange Commission (SEC) might push prices higher.

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