Is XRP On A Path To Extreme Correction?

Despite Jerome Powell’s statement concerning the US economy and recession, Bitcoin and Ethereum face difficulty stabilizing their prices. Still, the market is on the path to regaining stability as the crypto space has started moving sideways. Ripple’s XRP coin, on the other hand, has turned out to be the top performer of the elite group by gaining over 5% in value within a week.

After experiencing the death cross in August, the price experienced a massive plunge in its value, following which the coin started trading under the influence of a descending trendline. Further, the XRP coin traded in the consolidated range, after which Ripple experienced another price correction, breaking down its support line.

The coin formed another consolidated range of $0.5130 as its resistance and $0.4913 as support and traded in it for the first half of September. Following the massive price volatility in the market due to Bitcoin, XRP broke its support level.

After testing the crucial support level of $0.4685, the coin gained momentum and quickly broke multiple resistance levels of $0.4913 and $0.5130 within a week. The chart now displays a rising channel, indicating the price may rise further in the coming days.

The RSI has continued to trade above its midpoint for over a week now, indicating strong buying power. Further, the averages display a decline in their trend, indicating a possibility of price volatility in the coming days.

On the other hand, MACD displays constant flatlines in its chart. Further, the indicator displays a bearish convergence in its average lines, indicating the possibility of the XRP coin experiencing a correction in its price soon.

Will XRP Price Reach Its Resistance Level? 

If the bulls continue to gain power and cross the resistance level of $0.5337, the coin will experience a bullish moment in its price. Further, if the bulls manage to hold the price at that level, the coin will prepare to test the upper resistance of $0.60 in the coming days.

On the flip side, if the price fails to hold its support level of $0.5130, the coin may experience a bearish move in its price. Further, if the bears gain power, the price will prepare to test the support level of $0.4913 by the end of the month.