Ripple (XRP) price remains sidelined around $1.86 early Tuesday in Asia, licking its wounds with modest intraday gains after a four-week downward trajectory.
Despite the recent rebound, XRP faces a third straight monthly downside and the first yearly drop in three.
The altcoin’s latest gains could be linked to its U-turn from a key horizontal support and cautious optimism among the cryptocurrency traders, following a volatile day. However, a lack of liquidity due to the year-end holiday mood might challenge XRP recovery, along with multiple upside hurdles.
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Meanwhile, daily trading volume eases from a week’s high, while the market capitalization (market cap) seesaws within a six-day range, which in turn suggests a lack of participation from traders and can challenge the latest rebound in the Ripple price. According to Santiment, Ripple’s daily trading volume eases to $1.96 billion, while the market capitalization (market cap) seesaws near $112.72 billion by press time.
Apart from the sluggish trading participation, the Directional Movement Index (DMI) momentum indicator also flashes bearish signals and keeps the XRP optimism in check.
Let’s read technical details about the altcoin’s recent price action.
Ripple Price: Daily Chart Keeps Sellers Hopeful
The Ripple price defends the previous week’s corrective bounce from a horizontal support area comprising levels marked since November 21, between $1.77 and $1.82, amid the year-end consolidation of losses due to less liquid trading sessions and an absence of major catalysts.
Notably, the DMI’s Average Directional Index (ADX, red) line tops the Downmove (D-, orange) line, and both lines are stronger than the Upmove (D+, blue) line, highlighting a bearish directional momentum. Furthermore, the ADX and the D- lines are both near the 25.00 neutral level, while the D+ line is at 13.30, citing sluggish upside momentum.
Meanwhile, the 100-day Simple Moving Average (SMA) crossed the 200-day SMA from above during late November and portrayed the bearish moving average crossover.
As a result, a fortnight-old descending resistance line around $1.90 seems to be restricting the immediate Ripple price advance.
However, major attention is given to a downward-sloping resistance line from late November, close to $2.00, as a break of which can propel XRP toward the late November swing high around $2.30.
In a case where the Ripple price remains firmer past $2.30, the 100-day and 200-day SMAs, respectively near $2.32 and $2.57, will act as the final line of defense for the bears.
On the flip side, a daily closing beneath the aforementioned $1.82-$1.77 support area could make the Ripple price vulnerable to drop toward April’s low of $1.61. Still, a downward-sloping trendline from February, near $1.50, appears to be a tough nut to crack for XRP bears afterward.
Ripple Price: Four-Hour Chart Suggests Gradual Downside
On the four-hour chart, the Ripple price rebound lacks momentum support as the DMI’s all three lines, namely the ADP, the D-, and the D+, are sluggish below the 25.00 neutral threshold. However, the top position of the D- line keeps the sellers hopeful.
The sluggish momentum could restrict the XRP rebound, along with a seven-week-old descending resistance line near $1.90, quickly followed by the 200-bar SMA hurdle of $2.00.
Beyond that, a three-month horizontal resistance area near $2.60-$2.70 could attract the buyers ahead of the daily chart’s higher levels..
Alternatively, October’s low of $1.58 is likely an immediate stop for the Ripple price on breaking the key $1.77-$1.82 support area, before deeper levels discussed on the daily chart.
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