Analysis
XRP’s rally to 0.94? Here’s why it’s possible
Posted:
| Last updated: January 30th, 2024
Journalist
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- The 1-day and 1-hour timeframe price charts showed that XRP bulls were dominant.
- A dip to the $0.78 demand zone is likely to result in a higher rally.
Ripple [XRP] has been one of July’s standout performers in the crypto market. The Ripple lawsuit saw the judge rule that XRP was not a security, which sparked a remarkable rally on 13 July.
Realistic or not, here’s XRP’s market cap in BTC’s terms
The higher timeframe price chart favored the bulls. Further gains toward the $1.04 level or higher were possible, although there was the possibility of a deep pullback. Yet over the past week, buyers have succeeded in driving prices above $0.8. Can traders expect further upside?
XRP’s short-term momentum showed signs of weakening
Source: XRP/USDT on TradingView
The market structure has been bullish since 17 June, when XRP was trading at $0.715. Since then, buyers have forced prices higher and established an uptrend on lower timeframes. The 1-hour chart showed that there were two regions where XRP can find demand.
The first was the support level at $0.82 that had acted as resistance on 13 July. This level was briefly flipped to support in the past few hours but it seemed the bears could drive the bulls back a bit. The next support zone was the bullish order block at $0.0782, marked in red. It has confluence with the 55-period SMA and a move below this region would flip the structure bearishly.
The OBV did not see a strong dip even though XRP was on the verge of slipping beneath $0.82. The RSI was at 51, which showed bullish momentum was waning.
The rising spot CVD meant buying pressure remained significant
Source: Coinalyze
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As XRP prices crept higher over the past two days, so did Open Interest. The OI climbed from $700 million to $995 million, showing strong bullish conviction. The positive slope of the spot CVD also highlighted that buyers were dominant.
The OI and CVD showed bullish sentiment but the RSI was weakening. The price dipped toward the $0.782 support zone, where it is expected to bounce higher from. Invalidation of this idea would be a drop below the $0.768 level.
