XRP is struggling to maintain above important $0.37 price level as market becomes bearish again
After unlocking a billion tokens from an escrow wallet, the price of XRP actually faced a serious hurdle as traders and investors began to quickly sell off their holdings ahead of a potential one billion sell-off.
Ripple officially entered the local uptrend on July 1 after it closed above the previous low, forming a higher low pattern, which shows an upcoming reversal. Later on, XRP climbed above the 50-day Exponential Moving Average, which was one of the strongest signals for a reversal rally in the last 140 days.
For now, the bulls are actively trying to hold the line against the current selling pressure caused by the aforementioned unlocking of a billion tokens and the fading bullishness of the cryptocurrency market. As we mentioned earlier, the rally on Ethereum and Bitcoin could be misleading given the lack of fundamental recovery signals.
Despite negative sentiment around the crypto market, XRP remains in an uptrend and does not show signs of a reversal back below $0.35. At press time, bears poured more than 100 million of XRP on the market, which is considered a relatively low selling or buying volume for the token.
Additional indicators such as the Relative Strength Index are not showing information used by bears or bulls, as XRP’s most recent rally was not strong enough to push the asset into “overbought” territory.
The token remains in a neutral area after a 25% price increase and is now losing around 8% from the local top, which could be part of a local correction, after which we are going to see a resumption of the rally.
