The price of XRP, the native cryptocurrency of the Ripple network, has been struggling to break through higher price ranges, encountering significant resistance. This resistance coincides with a fair value gap, an area created from an imbalance in the order books, where large sell orders were not met with sufficient buying pressure, causing the price to drop.
The market is currently in a state of equilibrium, with supply and demand being equally met. This has resulted in a highly liquid market, where price movements are minimal. However, the market’s momentum, as indicated by the Stochastic RSI, shows weakness in the move to the upside. This suggests that sellers are likely to gain more control and push the price downwards, as there is insufficient buying pressure to push the price upwards. The fair value gap is currently set at $0.48343 to $0.49982.
Source: TradingView
For the price to break through this gap, there needs to be an increase in demand or a decrease in supply. Currently, there is a lack of buying pressure in this range, which is preventing the price from pushing upwards. The Elliott Wave Theory suggests that XRP is likely to experience a move to the downside before a significant move upwards. The main area of buying is expected to be between $0.461 to $0.4673. This would fill out the entire fair value gap and set the stage for a potential upswing.
On the daily timeframe, XRP is below the 50 EMA but above the 200 EMA. This suggests that a big move to the upside could be on the horizon, although it may not happen immediately. The Stochastic RSI on the daily is in a good position, indicating that a big move to the upside is likely, just not today.
In conclusion, while XRP is currently struggling with upper resistance and a fair value gap, the indicators suggest that a move to the downside is likely in the short term. However, this could set the stage for a significant upswing in the coming weeks. As always, investors are advised to do their own research and consider the market conditions before making any investment decisions.
