Ripple (XRP) has been in bearish mode over the past few weeks, with prices dropping to below $0.30 at some points during that time period.
Prices have recovered slightly, however, and the third largest cryptocurrency by market cap is now trading at $0.35 per token.
A brief look at Ripple’s price chart reveals that XRP has been going through its longest ever bear run, with prices failing to break above their January 2018 peak of $3.84 since that date.
The news surrounding Ripple’s XRP
Ripple’s XRP has been in a bearish mode since mid-September when the digital asset price peaked at around $0.32.
Since then, the price has dropped below the $0.30 mark and is currently trading at around $0.37.
The news surrounding Ripple’s XRP has been mostly positive, with the company announcing a new partnership with MoneyGram and rumors that a major bank is considering using Ripple’s technology.
However, the price of XRP has not responded positively to this news and remains in a bearish trend.
Investors who are looking for good returns may want to consider investing in bitcoin or Ethereum, which are both performing well right now.
Technical analysis indicates further rally is possible
The cryptocurrency market has been tearing over the past few weeks, with Ripple’s XRP leading the pack. However, the price of XRP has dropped below $0.30, indicating that the recent rally may be over.
This does not necessarily mean it is time to panic; technical analysis indicates that there could be an even more significant rally for Ripple’s token before the current bull run ends.
The chart below shows a bearish trend line (blue) and a bullish trend line (green) coming together at around $0.27 or so to create what is known as a convergence pattern.
These types of patterns often lead to a bullish reversal and have historically preceded rallies of 50% or more when they occur during an uptrend, which this appears to be one.
When looking at the 1-hour timeframe chart, we can see that this pattern seems to be signaling the beginning of a major reversal for XRP.
Lastly, notice how volume has declined significantly from its peak at about the same time as prices peaked.
When prices decline alongside declining volume levels like these, it signals fear among traders who are dumping their holdings en masse.
As such, this decline in trading volume is another sign that now might be a good time to buy Ripple while prices are low.
The big question now is whether this is a correction or the start of an uptrend
Ripple’s XRP token has been in a steady downtrend over the past few weeks, losing over 20% of its value. The price dropped below the $0.30 mark today, and is currently trading at around $0.37.
However, many are predicting that this is simply a correction and that we’ll see some upward movement again soon.