Relief rally seems in store for XRP as daily RSI approaches oversold conditions
Amid the ongoing market meltdown, XRP is seeing a 101% increase in trading volumes to $4.52 billion in the past day.
In the last 24 hours, the crypto market was hit with another wave of sell-offs. XRP is likewise down 15% since the previous day and down 17% in the last seven days, per data from CoinMarketCap. At press time, XRP was changing hands at $0.378.
On Nov. 4, XRP reached a high of $ 0.50, gaining 12% in a single day. The rise extended until Nov. 5 before bulls ran into a barrier at $0.51. This coupled with the fact that the market has struggled since the weekend on apprehensions over two major events, the U.S. midterm election and the U.S. Bureau of Labor Statistics consumer price index (CPI) data to be released on Thursday, has caused XRP to cascade.
XRP might be on track to mark its fifth consecutive day of losses since Nov. 4, with the daily RSI approaching the critical oversold level of 30.
A massive decline on Nov. 8 caused the XRP price to touch the key support level of $0.33, from where it produced a 61% rise in September. On touching this level, the XRP price quickly rebounded, erasing some losses, but it is not out of the woods yet owing to the bearish market conditions.
It might take a little while for the market to recover owing to the massive liquidations recorded in the last 24 hours. However, a relief rally seems in store for XRP as the RSI approaches oversold conditions.
On the upside, a flip of the $0.40 barrier at the daily MA 200 to a support floor might be crucial in recovering the recent losses. In such a case, the XRP price could rise 12% to $0.447 and then reach the $0.47 level.
On the other hand, further declines from its current levels might see a retest of the $0.33 level ahead of the $0.313 floor.