After falling from the price mark of $0.37, XRP price is again facing selling pressure. The altcoin has been consolidating over the past week and has lost 1.2% of its market cap over the past 24 hours. Over the past seven days, the price of XRP is down close to 8%.
Buyer confidence began to fade considering how long XRP traded below its immediate resistance mark. Broader market weakness has also set it a move for bitcoin to $20,800 at press time. The technical outlook for Cardano (ADA) has turned bearish, as seen by the number of sellers in the market.
Due to the lack of demand for Cardano, selling power had taken over the charts. The altcoin was trading fairly close to its nearest support level. Continued price action could push XRP price to the next support line. For the bulls to return, it is important that the demand for XRP increases in the immediate trading session.
Cardano Price Analysis: Four-Hour Chart
At the time of writing, the altcoin was trading at $0.34. XRP was trading fairly close to the nearest support level, so it might fail to defend the $0.34 support line soon. The next support level for the coin is $0.31.
XRP had upper resistance at $0.37, with the bulls being rejected by that price mark as seen a few trading sessions ago recently. If XRP continues to struggle below the $0.37 mark, it may revisit $0.29 in the next trading session. XRP trading volume on the chart increased, indicating that selling pressure has increased.
technical analysis
As of press time, the altcoin has registered a declining buying power. The weakness in the broader market can be attributed to the recent drop in XRP price.
The relative strength index was pitched below the halfway line and this meant that selling pressure was overshadowed by buying power.
XRP price moved below the 20-SMA, which indicates low demand and that sellers were driving the price momentum in the market.
As seen on the chart, the recent price drop is not reflected in other technical indicators. XRP continues to show a buy signal. Moving average convergence divergence indicated price momentum and if a possible reversal was likely.
MACD depicted a green signal bar on the half-line indicating a buy signal, however, the signal bars were decreasing in size. This indicated a capture of the selling power. The Directional Movement Index reads the price movement and direction.
DMI was still positive as the +DI line was above the -DI line but the +DI showed a sharp decline. The Average Directional Index (red) was below 20 indicating that the bullish momentum has been completely lost. Buyers and broader market strength could help the coin recover.