XRP seems to be carving out a bottom within historical support, with some strength growing on the indicators. But buy volume remains almost completely absent, negating any confidence we may have in such a thesis.
Looking at the 12-hour XRP/BTC chart, we see strength showing up. A brutal dump on Wednesday (August 14 – obviously because of news of a class-action lawsuit against Ripple) was quickly bought up before it could be registered on the indicators. The RSI looks like it might continue upward after extreme oversold conditions, and the histogram is flattening out nicely at time of writing. MACD is inching ever closer to the centerline.
The main problem here is volume: there is very little buy volume, with little indication of a change in that trend. Tepid indicators of strength are one thing, but more buyers are needed here.
Looking at a longer timeframe, 3-day, we see this picture repeated. Strength is slowly growing on the RSI, diverging bullishly from price. Volume has fallen over time, looking like a consolidation. A vaguely formed falling wedge makes us hopeful of an eventual breakout.
On an expanded MACD chart (still 3-day), we see a promising tick up on the latest histogram bar. Some decent movement here could break the histogram consolidation pattern that has been forming, and give the MACD a much needed boost toward the centerline and positive territory.
On the USD side, XRP had been performing modestly – not well – before the news-driven selloff. The leading altcoin is now trading in a deep and critical support zone at around $0.28-25. XRP is now considerably oversold on the daily chart, and we can expect some relief from this after the news has had time to settle.
In sum, XRP’s decent response to the bad news, combined with its steady growth on the indicators, indicates that a bottom is probably being carved out on both charts. But we are nowhere ready to declare uptrends on either short or long term trends. For fundamental believers, however, now is probably the time to buy at discounted prices.
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