XRP price started the new week in the red, losing 0.19% in 24 hours to trade at $1.09 at 0823 GMT on Monday, 18th October 2020. Short-term participants’ concerns were compounded by the current condition of XRP’s on-chain statistics.
Santiment data shows that on October 1, over a billion XRP coins were displaced, whereas on October 15, the same tokens had a value of just about 720 million.
An increase in dormancy usually signifies a more general trend of accumulation in the economy or financial markets.
XRP missing in action
Short-term investors could be growing impatient with XRP due to the token’s unattractive returns in the near term. Typically the token should have been on the rise alongside other crypto tokens as the global crypto market enjoys the current boom.
For context, the XRP price has only gained about 7% over the last month. Bitcoin, on the other hand, has seen a gain of over 30%, while ETH has had gains of over 15% within the same time period.
XRP bulls will perhaps argue that the token has shown stability in recent past, which is likely to secure its investors funds if the current crypto upsurge reverses. Despite trading in a range recently, the price of XRP has been rather stable.
Technical analysis for XRP price
XRP is ranging and its price is barely holding above the $1 mark. The market momentum is generally mild and is currently at 52. This means that XRPUSD could swing in either direction. The 10-day EMA is slightly above the 20-EMA, which signals a slight advantage by the bulls. This could support price movement upwards to the first resistance at 1.12 and the second one at an 8-day high at 1.21.
The $1 mark is an important psychological support level and breaching it on the downtrend could spell more trouble for XRP. In the near term, the first support is likely to be at 1.06, while the second support is likely to be at 1.00.
