Throughout the past few weeks, XRP has been consolidating along with Bitcoin and Ethereum. As a result, it lingered around $0.30 all throughout these past several days. Analysts eye volatility for XRP and they wonder whether or not it will favor bears.
This level was a strong support previously. However, the buying pressure was showing some signs of declining as XRP goes below it. In fact, it may now be vulnerable to further downside because of this. A certain analyst is now pointing fingers to the formation of a massive pennant, saying it was a sign of imminent volatility for XRP.
There are numerous factors that are suggesting bulls will be in control of the next big movement.
XRP forming Close Correlation to BTC and ETH
Just like most of the other major digital assets, XRP was also stuck in a binge of sideways trading all throughout these past weeks.
This happened because investors began shifting their interest away from major tokens. They are forming interest towards small and mid-cap altcoins which have been giving massive returns recently.
Because of this, XRP has built a remarkably close correlation to both Bitcoin and Ethereum. Nonetheless, it is flashing some independent signs of weakness as its sellers hold it below $0.30.
In spite of this, a certain analyst is still having positive thoughts and thinks an upside is approaching. He emphasized the various factors that appear to affirm this claim.
XRP Arrives at the Peak of Massive Flag Formation and Analysts Eye Volatility
As of the moment, XRP is now trading down marginally with the current price, $0.29. throughout these past few hours, it has been trading around this price.
On the other hand, the token has seen a sudden influx of selling pressure just a couple of days ago. As a result, its price went to lows of $0.285 from $0.31. Moreover, the cryptocurrency was able to find support here and has been trading around its current price level since then.
It seems that volatility is indeed imminent in the coming days.
A certain analyst shared a chart, saying that volatility is approaching.
Will this Volatility Favor Bulls or Bears?
Another analyst shared the upside target for XRP at $0.475. However, he emphasized that it needs to close its weekly candle above $0.30 in order for this to work. Moreover, he said that a break above this upside target could cause a rally towards $1.00.
The coming days will probably give clear insights regarding which direction XRP will trend in the coming weeks and even months.