Analyst Says XRP Bullish Sentiment is Sustained as XRP Creates Higher Lows

XRP has recently encountered some obstructions to its previous surge. However, market analysts believe the XRP coin will sustain its bullish trend, given the rate at which it records higher lows.

Amid the ongoing market volatility, XRP declined by 22% from its July 13 peak price of $0.9398, raising questions among investors.

Despite the bearish outlook, a notable on-chain analyst, Predictor, shared an optimistic view of the market, assuring the present dip does not yet signal a trend reversal.

Ripple's Native Coin Creates Higher Lows

In a July 22 tweet, Predictor highlighted XRP/USD analysis, detailing a potentially favorable trend for XRP on the 4-hour chart.

XRP has decreased more than 10% in 2 days - should you worry?

The answer is...not yet!

XRP is still producing higher lows, meaning the bullish trend is still intact.

One thing that's worrying is that volume has been decreasing since last week!

This means that less people are... pic.twitter.com/cg4z7xjxIw

- Predycto (@predycto) July 22, 2023

He believes the XRP token's continuous record of higher lows" depicts an optimistic view of the coin and an upcoming bullish trend. For context, a higher low happens when the lowest price mark of a specific period is more than the lowest mark of the previous period.

This observation reveals underlying strength, as buyers continuously push the coin's price higher.Moreover, XRP declined below the $0.70 price zone a few hours after recording a peak of $0.9398 on July 13.

The coin declined to $0.6686 the following day, recording its lowest price point after the surge triggered by Ripple's partial win against the SEC.

XRP immediately rebounded from that decline and has traded lows higher than the previous lowest values in the past 4-hour candlesticks.At press time, XRP's lowest low is at $0.7223, an 8% growth from the $0.6686 low on July 14.

A Dip in XRP Trading Volume

While these higher lows offer an encouraging signal for traders, there's still a segment that demands much attention-XRP's trading volume.The crypto analyst pointed out that XRP pairs' trading volumes have dropped from the past week's figures.

Usually, a spike or decline in price action followed by high trading volume signals the market direction and reveals strong interest from traders and investors. But a decrease in trading volume amid price fluctuations may reveal a decline in investors' interests.

The world's fourth-largest crypto recorded a 23-month peak trading volume of $10.4 billion on July 13. But the trading volume has encountered steady decreases since then.

Despite intermittent spikes observed on July 16 and July 19, the token's trading volume has declined. The pair observes steady, increasing prices and notable trading volume in a healthy bullish trend, suggesting increased investor interest and participation.

On the contrary, a decline in trading volume during a bullish trend may indicate a signal for a possible market correction.Predycto projects that traders would need to be watchful so long as XRP trades over the key level of $070.

Though the present market conditions do not call for immediate concern, a decline below this level could result in a retracement, with the price action retesting the $0.60 support level.

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