Analysis
XRP falters at support level – can bears take advantage?
Posted:
| Last updated: January 30th, 2024
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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- XRP hovered over a key support level, as bears looked to flip the market structure.
- Market speculators remained hesitant, as evidenced by the tight margin on long/short ratio.
Ripple’s [XRP] price action dwindled from the price high after its favorable ruling as a non-security token. After hitting a 2023 record of $0.940 on 13 July, XRP has twice found the $0.850 resistance a tough obstacle to overcome.
Realistic or not, here’s XRP’s market cap in BTC’s terms
With prices hovering above the $0.680 key support, a break below that level could signal a shift in momentum from bullish to bearish.
Bulls and bears tussle between key price levels
Source: XRP/USDT on Trading View
Previously, the price correction after XRP’s massive pump on 13 July found some footing at the $0.680 price zone. This allowed for another bullish push. However, the rally met stiff resistance at the $0.850 level with bears taking over strongly to force prices down.
Although the bulls mounted a defense on the first retest of the $0.680 support, the on-chart indicators pointed to a continuation of the bearish trend. The Relative Strength Index (RSI) hovered over neutral 50, despite the slight price push off the support level. This showed a lack of buying pressure at key price levels.
The Moving Average Convergence Divergence (MACD) also posted a bearish crossover on 21 July. Even though the Moving Averages remained above the zero mark, the MACD displayed red bars below the zero level to indicate growing bearish strength.
A break below the $0.680 support could see XRP free-fall toward $0.563. On the other hand, if bulls sustain prices above the support level, buyers could be spurred to attempt another push for the $0.850 resistance level.
Longs and shorts evenly matched
Source: Coinglass
Read Ripple’s [XRP] Price Prediction 2023-24
The tussle on the price charts extended to open contract positions in the futures market. Data from Coinglass on the 12-hour timeframe showed that shorts held a marginal 50.08% share advantage over the longs’ 49.92% share.
The hesitant sentiment by market speculators leaves a window of opportunity for either bears or bulls to take advantage of, based on Bitcoin’s price action.
