For the Last Ten Days, Ripple (XRP) has been consolidating!

XRP is one of the most popular cryptocurrencies, but it has encountered stiff resistance from the Securities and Exchange Commission, which requires it to be classified as a security. While the problem caused by this litigation appears to have subsided, a later rally coincided with the broader crypto market.

Ripple is not merely a banker's joint venture; it is rapidly advancing towards smart contracts with a fresh upgrade plan for its XRPL. As you might have predicted, XRP is joining the smart contract space with XRPL, but the process is as straightforward as it sounds.

The inclusion of XRPL in smart ledger contracts will pose a challenge to Ethereum and other cryptos that enable smart contracts, eroding their market dominance. Over the previous year, the growth of decentralised finance (DeFi) and smart contracts has piqued XRP's interest in the sector, leading to the creation of the Federated Sidechains within XRPL.

Analysis of the XRP Price

XRP has climbed more over 160 percent since the July 21, 2021 lows, raising eyebrows as it gained more than expected in light of the ongoing SEC case. While the highs were not unprecedented, the rally was noteworthy. Interestingly, the rise of the RSI from oversold to overbought zones within a month signals a significant transformation taking place in this crypto industry especially with XRP.

XRP was able to reclaim support from the level on August 18th and achieved a 23 percent rise over the next three days. However, these consolidation zones will be dismantled as a result of profit booking. One must be prepared to profit from any sell-off and re-enter the XRP area.

The 200 Day Moving Average, which serves as a solid benchmark for evaluating the price of any asset, is currently 35% below the current price of $1.161, which XRP is trading at following a 9 percent drop yesterday on August 24th 2021. One should anticipate profit booking in XRP as long as immediate support remains active around the $1 physiological level.

XRP has reached a bottleneck level following a big breakout at the $1.05 levels. At the moment, we have good support at $0.80 and resistance at $1.30. There is a high possibility of a correction below $1.00, followed by a bounce to $2.

This price analysis is based on a decline in buying mood over the last 10 days, which was accompanied by a decline in volume. As long as the RSI remains above the 50 level on a histogram, XRP should recover. The combination of support levels and the RSI would indicate the ideal time to add further XRP coins.

On hourly charts, there has been no change in either direction as XRP consolidates in a narrow range. While the RSI suggests an oversold condition with histogram values below 40, the MACD indicates a bullish divergence, signalling an imminent upward trend. According to our Ripple price prediction, if XRP overcomes the resistance level of $1.32, it should enter a consolidation phase with a significant bias towards profit booking.

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