XRP, which is now the fourth altcoin on the market, has not had the best months. In the second quarter of 2020, which has just ended, altcoin grew quarterly by less than 2%, its dominant position in the market, which now accounts for 3.16% of the total cryptography market, fell by 1.3% between March and July. During this quarter, XRP was overtaken by Tether due to its massive trading volume, pushing it to number one to number four in the market, with a total market capitalization of $8.81 billion, compared to $9.1 billion for Tether

Looking at the XRP short-term hourly price chart, the trading range is getting tighter and tighter and strong pressure is expected. Since hitting $0.21 last week, the price of XRP has fallen, forming a wedge in the process. While this wedge can be placed even at $0.204, which was realized on July 11th, a larger wedge would provide more context

Since the formation of the wedge, the XRP has experienced three lows, each reaching the top of the wedge successively from July 11 to July 13. At the bottom, after dropping below the support at $0.197, the price has risen but has formed constant lows over the last four days at $0.198.

Source: XRPUSD via Trading View

As the top and bottom trend lines appear to coincide, the volatility of XRP has decreased. The Bollinger Bands contracted sharply last week, and their simple moving average does not coincide with the price, indicating a stable trading range between the $0.202 resistance, which the XRP crossed lower on July 11th, and the support below $0.198

Chaikin’s cash flow for Altcoin increased from 12 to 13 July, and even briefly exceeded 0, but was pushed below it on 13 July. Currently, it is tending towards the negative at -0.03, and will continue to decline if the price remains stable. Since peaking at $0.21, XRP has been trading with extremely low volume. According to Coinmarketcap data, XRP’s 24-hour trading volume between July 8 and 10 averaged $1.6 billion, but in recent days the volume has dropped to less than $1 billion per day, on average.

This low volume, combined with wedge pressure and the negative valuation of the CMF, is a bearish sign for the price of Altcoin. If the price falls, which is likely, the immediate support levels of $0.198 and $0.197 should be viewed with caution

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2020-07-13