XRP Price Analysis: Will XRP Token Price Again Test The Lower Support Of $0.2
- XRP price is currently in a downtrend with a bearish engulfing pattern on the daily chart. Meanwhile XRP search on google has declined from the past seven days.
- XRP price is currently trading at $0.83 with a loss of 6.3% in the past 24 hours. In contrast the XRP/BTC pair is also on a downtrend with a loss of 1%
What Makes XRP Token The Best Candidate For Arbitrage Portfolio?
XRP token price has seen a jump from $0.2 to $2 in a very short time frame. One can argue that XRP has very high volatility which is unhealthy for an arbitrage. This high volatility can give greater returns but if done carefully. If we pair XRP with XLM then a mean reverting residual line can be formed with a high linear correlation. The portfolio formed with the XRP and XLM with the help of regression can be profitable.
While trading the unit of portfolio one should be highly careful regarding the relationship between the two assets. The coefficient for XRP while working on the last one month chart comes out to be 45. One should do their own research before jumping into the arbitrage world.
Technical Indicator Hints Consolidation For The XRP Token Price
Source: Trading view
XRP weekly techical chart highlights a bearish momentum in the price. The price is currently trading near $0.83 with a resistance at $1.5. A bounceback in the price can be expected near the price of $0.5. XRP price has formed a bearish engulfing pattern on the daily chart. If the price goes below $0.5 then one can expect its momentum till $0.2. It is currently trailing above 50 and 100 Daily Moving Average. The 100MA(Yellow) line is near the current price making it a temporary resistance for the asset price . XRP/BTC pair is currently in a slump but can soon see a recovery in upcoming days
MACD (Bearish): The levels highlighted for an upcoming positive crossover signal in the upcoming days. The MACD indicator reflects a weak consolidated momentum for the coin. Bars of histograms are also showing a sign of consolidation.
XRP token price has seen a 2X decline in the past few weeks . The XRP/BTC pair shows less signs of an uptrend. One can expect the reversal of trend in the future. Investors should do their due diligence before investing .