XRP (XRP) Price Holds Above Critical Support Levels Despite Mixed Signals from Technical Indicators

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XRP (XRP) showed resilience on Tuesday as it remained above key support despite mixed signals from technical indicators. The cryptocurrency slid by over 1% to trade at $2.26 by 07:04 ET (11:04 GMT), extending a slight pullback from three consecutive days of gains.

Broader cryptocurrency markets appeared stable, with Bitcoin (BTC) holding above the $94,000 mark. This stability could provide a supportive backdrop for XRP as it digests recent gains.

Technical Analysis: Key Levels to Watch

XRP was trading within a descending channel pattern, according to Bollinger Bands analysis. However, since bouncing from its yearly low of $1.61 on April 7, the digital asset has displayed increasing potential for a substantial rally.

Key support for XRP was at the 50-day and 100-day Exponential Moving Averages (EMAs), currently positioned at $2.20 and $2.22 respectively. These levels had proven reliable during recent pullbacks and could serve as entry points for traders looking to buy dips.

The token was currently trading above its 50-day, 100-day, and 200-day EMAs, all of which were sloping upward. This alignment of moving averages typically confirmed positive momentum in the market.

Technical Indicators Point to Potential Consolidation

On the daily chart, the Relative Strength Index (RSI) sat at a neutral 58.11, suggesting room for movement in either direction. However, as long as the RSI remained above the midline of 50, the bulls may maintain their advantage.

The Moving Average Convergence Divergence (MACD) indicator presented a more cautious outlook. While the MACD line remained above the signal line—typically a bullish sign—the histogram was shrinking, indicating weakening upward momentum.

Bollinger Bands analysis suggested XRP was trading near the upper band, which often signaled overbought conditions. The tightening of these bands may indicate an upcoming period of volatility, potentially leading to either a breakdown or breakout.

For XRP to continue its upward trajectory, it must first overcome resistance at $2.40. Beyond this level, supply zones at $2.80 and $3.00 could present challenges to further price appreciation.

Market Factors

Several external factors could influence XRP’s price in the coming weeks. Ongoing settlement negotiations between Ripple and the Securities and Exchange Commission (SEC) remained a focal point for investors. Both parties were granted a temporary stay of the appeals process earlier this month to facilitate these discussions.

The approval of futures XRP Exchange-Traded Funds (ETFs) had generated positive sentiment around the token. However, contrary to some reports, ProShares confirmed that no spot XRP ETF will launch on April 30.

A Bloomberg ETF analyst and ProShares spokesperson clarified that while a launch is expected in the short to medium term, no official date has been set. The upcoming ProShares ETFs will offer exposure to XRP through futures contracts, including leveraged and inverse options.

Derivatives data from Coinglass shows a slight increase in Open Interest of 0.09% to $4 billion, suggesting new positions are being opened. However, the long/short ratio of 0.9559 leans toward shorts rather than longs, indicating waning confidence among traders.

Over $350,000 was liquidated in long positions compared to approximately $59,000 in short positions in the past four hours. This imbalance suggests some bulls are being shaken out of the market.

If XRP fails to maintain its current support levels, it could extend its downward movement to test the 200-day EMA at $1.98. A deeper correction to $1.80 remains possible if overall crypto market sentiment turns bearish.

As April draws to a close, traders are closely monitoring XRP’s ability to hold above the crucial $2.20 support level, which may determine its next major move.