Analysis
Is XRP’s rising demand good news for the bulls?
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.
- XRP possessed a bullish structure on the H4 and lower timeframe charts.
- The increase in demand over the past few days was an encouraging factor for the bulls.
Ripple [XRP] saw weakness from the buyers over the past two weeks as prices embarked on a downtrend. The bulls faced rejection from the $0.54 resistance region.
Read Ripple’s [XRP] Price Prediction 2023-24
In other news, Ripple replaced Circle [USDC] as the fifth member of the Hong Kong Virtual Asset Consortium [HKVAC]. Yet, the report also found that USDC had a much higher network growth than XRP.
A technical analysis report from AMBCrypto dated 12 October drew attention to the bearish bias of XRP on the 1-day chart. It also highlighted the $0.46 as a critical support level. How do the lower timeframe charts look?
XRP’s rejection at $0.5 on Monday might be a precursor to further losses
Source: XRP/USDT on TradingView
The move above the recent lower high at $0.489 (orange) saw XRP flip its market structure bullishly. The RSI also climbed above neutral 50. The DMI saw both the ADX (yellow) and +DI (green) jump above 20.
Hence, the factors reflected strong bullish sentiment just 30 hours before the time of writing. Yet, things have begun to change. The OBV has been in a downtrend throughout October, and this lack of buying pressure saw prices decline to the $0.489 mark.
The RSI, which reached a high of 65 on Monday, was at 47 and indicated bearish momentum was beginning to take control.
The next higher low that XRP bulls must defend in the near term was at $0.4835. A move below this would shift the market structure bearishly once more and could see XRP fall to $0.46 or lower.
Is the spot CVD at loggerheads with the OBV?
Source: Coinalyze
The spot CVD has climbed higher since 9 October, when prices bounced from just above the $0.47 mark. Yet, the OBV has been in a steady downtrend- but the volume indicators aren’t disagreeing with one another.
The OBV also noted a minor bounce since 9 October, but its trend has been downward in recent weeks. The spot CVD’s uptrend was an encouraging factor for short-term bulls.
How much are 1, 10, or 100 XRP worth today?
Open Interest also climbed higher over the past two days alongside prices. This signaled bullish sentiment in the market. Therefore, as things stood, it was likely that XRP could climb toward $0.5 again.
Whether the bulls can breach this mark was unclear, but a continued uptrend on the CVD would strengthen the bullish case.
