- XRP saw a minor rally.
- Ripple has reclaimed the $0.5 price range, and has kept climbing.
After enduring consecutive significant declines, Ripple [XRP] appeared to experience a rally in the past week.
Despite these positive price movements, the road to recovery is far from complete, as the current price ranges posed significant hurdles.
Ripple sees mini rally
AMBCrypto’s look at XRP’s daily timeframe chart revealed that it concluded the trading session on the 20th of April with a notable increase in value, surpassing 5%.
This upward movement resulted in the price closing at around $0.52.
While this increase may not have garnered attention under normal circumstances, it followed a tumultuous previous week when XRP experienced a drastic 22% drop within 48 hours.
The decline dropped the XRP price from the $0.60 range to around $0.48.
At the time of this writing, XRP was trading at approximately $0.53, boasting an additional 1% increase. The chart indicated that the immediate resistance is posed by its long Moving Average (blue line), around $0.58.
A breakthrough above this line would signal a potential rally for XRP.
However, facing longer-term resistance around the $0.65 and $0.70 price range suggests that a new rally may be achievable only if XRP surpasses these levels.
Source: TradingView
Despite the recent price increase, the XRP price trend remained bearish. Its Relative Strength Index (RSI) indicated that XRP still resided below the neutral line at press time, showing ongoing downward pressure.
Traders’ sentiment remains low
Two weeks ago, it wasn’t just the price of Ripple that experienced a decline; the volume of funds flowing into the cryptocurrency also dropped.
Data from the Open Interest chart on Coinglass revealed a sharp decrease in volume coinciding with the drop in XRP’s price. The volume plunged from over $1 billion to around $500 million during that period.
As of the latest data available, Open Interest stood at around $522 million.
This decline in funds inflow indicated a significant reduction in investor sentiment toward XRP, reflecting low confidence among traders.
A more positive sentiment would likely facilitate the emergence of more uptrends in the price of XRP.
XRP in profit nears 78 billion
In addition to the price surge, another metric that experienced an increase was the Ripple supply in profit.
Realistic or not, here’s XRP market cap in BTC’s terms
Data indicated that with the recent rally in price, the supply in profit has surpassed 77%, representing almost 78 billion XRP in profit.
This trend is expected, as higher prices typically lead to a greater portion of the supply being in profit.