The price of Ripple has reached its highest level in the last 3 months with a 54% growth that it has experienced in the last 7 days. However, technical indicators show that the current price of this digital currency is too high and is likely to fall below current levels.
to the Report Coin Telegraph, with Ripple continuing its strong uptrend, the price of this digital currency has almost reached its highest level in the last 3 months. However, a sharp rise in prices since last week could lead to Ripple overvaluing in the market and increase the likelihood of prices returning to previous levels.
Yesterday, the price of Ripple was able to cross the $ 1.2 level for the first time since May 22 (June 1) with an increase of 18%. The move is part of Ripple’s massive uptrend, which began on July 20. At this date, Ripple was trading at $ 0.54 and has risen 134% since then. It should be noted that Ripple has experienced a growth of 54% in the last 7 days.
Saturation of buying in the Ripple market
Following the formation of the latest uptrend in the Ripple market, two classic indicators predict the impending price correction.
The first indicator is the relative strength index (RSI). The Relative Strength Index measures the amount of price changes to identify buy or sell saturation positions. The RSI always fluctuates between zero and 100. If the index is above the level of 70, the market is in a state of saturation, and if it is below the level of 30, the market is in a state of saturation.
When the RSI is above the 70 level, buyers usually sell their assets at high price levels in order to make the maximum possible profit. On the other hand, if the RSI is below the 30 level, traders will have the opportunity to buy at a relatively low price.
In the one-day Ripple / Dollar market, the relative strength index has crossed the 70 level, indicating that the price of this asset is currently too high. At the time of writing, Ripple has experienced a slight correction from its most recent high of $ 1.2 to $ 1.14.
The second indicator is the Bollinger Bands. The Bollinger Bands Indicator consists of lines that define the standard range of price fluctuations in the upper and lower ranges of the Simple Moving Average (SMA). These lines, also called “bands”, measure price fluctuations based on the distance between the upper band and the lower band. When the price candle leaves one of the bands, it tends to return quickly within the Bollinger Bands range.
During Ripple’s latest uptrend, the price candle has crossed the high bandwidth resistance, indicating that the price is currently too high. As a result, it can be said that the price candle is likely to return below the upper band; The move could be accompanied by a drop in the price to the 20-day moving average (orange line) in the range of $ 0.80.
Is there a possibility of further growth?
Despite the risk of the market falling from current high prices, some traders believe that Ripple will continue to rise. DonAlt, a digital currency market analyst, has said that Ripple could reach its historic high again only because the price candle has crossed a resistance level.
Don Alt said:
The price candle closes this week above the red range ($ 1 level) and I see no reason why Ripple should not record a new historical high. However if the historical peak [در کار] The end of this uptrend is near.
Coin Cage, another popular digital currency market analyst, added fundamental factors to the issue of Ripple’s recent uptrend, saying that the digital currency would reach its historic high, which would mean that Ripple with the Commission The US Stock Exchange has reached an agreement.
The US Securities and Exchange Commission filed a lawsuit against Ripple in December 2020, accusing the company of illegally selling XRP tokens, which the commission considers to be securities. Ripple executives also denied the allegations.
Ripple has until August 16 (August 25) to respond to the request of the Exchange Commission to review the data file related to its internal communications, which was done through Slack messengers. If Ripple provides these documents to the stock exchange commission, it may be somewhat clear whether the company has sold XRP tokens to its clients as securities.