XRP Traders “Fearful” But Analyst Predicts Spike Above $3

XRP traders remain in the "fear" zone per the Fear and Greed indicator. Still, bulls expect a sharp close above $3

Dalmas Ngetich•Monday, May 20, 2024•1 min read

XRP is in seventh place on the market cap leaderboard and has been looking stable in the past few trading days. Even with supporters expecting explosive growth, the coin is fixed within a narrow range. Sellers are still in control, and prices are inside a descending wedge, signaling general weakness. How prices react at the $0.55 and $0.46 levels will be critical in the short term. Bulls need to flow back and sustain the momentum from mid-last week as things stand.

The XRP coin is stable, adding 3% in the previous week. Even though there are hints of strength, the coin is within a bear breakout formation following sharp losses below a multi-week trend line in mid-April. Any recovery above the descending wedge, ideally backed by rising volume, might ignite demand. In that case, engagement could expand above $1 billion from the current $682 million mark.

XRP daily chart for April 20

The following XRP and Ripple news might influence price action in the short term:

As the smart contracts scene heats up, the XRP Ledger has emerged, processing over 251 million transactions in Q1 2024, a 2X increase from the previous quarter. Even with the spike in transaction count, fees fell by 45% to around $0.000856.
According to the “Fear and Greed” indicator, XRP traders are mostly fearful and in the neutral zone. However, this doesn’t prevent some optimists from predicting sharp price movements. Some say XRP is headed to $3.

XRP Price Analysis

XRP/USD is stable at spot rates.

Looking at the daily chart, the $0.50 level is still important.

Prices are still moving inside a bear breakout formation and the descending wedge.

For the uptrend to remain, there must be a conclusive close above the liquidation zone of $0.50 and $0.60. This will invalidate the bears of April 13.

Conversely, losses below $0.46 will mark bear trend continuation, ushering in another possible wave of lower lows to $0.40.