The price of XRP has been on a steady uptrend for the past five days, despite macroeconomic factors weighing on markets. At the time of writing, XRP was trading slightly higher at $0.4853, with its market cap inching higher for the day. The coin’s volume has also moved higher in the past 24 hours, hinting at a bullish outlook.
XRP has staged a significant recovery in the past few days, jumping more than 6% in the past week. The coin has managed to secure a place among the best-performing altcoins in the past week. Its market cap has tilted higher to $25 billion, ranking the asset 6th after USD Coin.
The cryptocurrency market was in the green on Monday, with the global crypto market cap jumping more than 1% over the day to $1.15 trillion. The total cryptocurrency market volume increased by nearly 62% over the same period. The recent rally in the crypto market has been on the back of the finalization of the US debt ceiling deal that has been gnawing on markets for the past few days.
The US dollar shied away from its six-month high on Monday after US President Biden and House Speaker Kevin McCarthy finalized a budget agreement, suspending the $31.4 trillion debt ceiling to 2025. This will allow the US government to continue borrowing money and pay its bills on time. Even so, Congress must pass the deal before June 5, when the US Treasury is said to run out of cash.
The US debt ceiling deal lifted risk appetite in global markets while denting the greenback’s safe-haven appeal. The deal has seen risk assets such as cryptocurrencies and stocks rally. However, concerns that the Federal Reserve is likely to hike its interest rates further in its next June meeting have continued to weigh on the assets.
The economic resilience in the United States has reinforced market expectations of the Fed hiking its funds rate in June. Higher interest rates have the potential to sway cryptocurrency markets. In focus is the CB Consumer Confidence data for May set to be released on Tuesday.
XRP price appears optimistic with its recent market trends suggesting a bullish trend. XRP price has moved past the descending channel shown in yellow. The asset has managed to move above the 50-day, 100-day, and 200-day exponential moving averages (EMA). It is also hovering above the 50-day and 100-day simple moving averages (SMA). Its Relative Strength Index (RSI) has jumped to 62, slightly below the overbought zone.
As such, the XRP price is likely to further extend its uptrend in the upcoming few weeks as buyers eye this year’s high at $0.5850. However, we cannot rule out a move below the 50-day EMA which will invalidate the bullish view.
Looking at the XRP price chart, we can see that the price of XRP has been making higher lows and higher highs. This is an indication that there is a bullish trend as buyers continue to push the price higher. The price of XRP has also breached the descending channel that it has been stuck in for the past few months, which is an additional bullish signal.
Moreover, the price of XRP has managed to move above the 50-day, 100-day, and 200-day EMAs. This is a strong bullish signal as it indicates that XRP is not only in a short-term uptrend, but also in a medium-term and long-term uptrend.
In addition, XRP has been hovering above the 50-day and 100-day SMAs. This is another positive sign as it suggests that the current uptrend is sustainable.
The RSI is another tool that traders use to gauge the strength of a trend. An RSI above 70 is considered overbought, while an RSI below 30 is considered oversold. The RSI of XRP is currently at 62, which is slightly below the overbought zone. This suggests that there is still room for the price of XRP to move higher.
In conclusion, XRP has been on a steady uptrend for the past five days, despite macroeconomic factors weighing on markets. The recent rally in the crypto market has been on the back of the finalization of the US debt ceiling deal. XRP’s recent market trends suggest a bullish trend, with the price managed to surpass various moving averages and making higher highs and higher lows. Traders eye a possible retest of $0.5850, but the bearish view is invalidated with a move below the 50-day EMA. As with any investment, investors should always conduct their due diligence before investing in XRP.