Ripple [XRP] falls to psychological support level: Can bulls step up soon
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- The higher timeframe market structure was firmly bullish.
- Momentum waned, and a slow retracement into the golden pocket was a strong possibility.
Ripple [XRP] has been powerfully bullish in March as speculators seemed to bet on a positive outcome in the SEC verdict. The XRP Ledger [XRPL] continued to see good performance as it averaged over 1.4 million transactions a day since 19 March.
Read Ripple’s [XRP] Price Prediction 2023-24
The announcement of sidechain support for XRPL was positive for users, but on the charts, the token was in the grip of a correction after its recent gains. The $0.5 and $0.45 levels are likely critically important in April for bulls to defend. Bitcoin’s [BTC] breakout past $29k, if it occurred, would also likely send euphoria rippling across the crypto market.
Fibonacci retracement levels show this area could see an XRP consolidation
After the strong rally last week, XRP has fallen by 13.3% and counting, measured from the swing high at $0.585. The breakout was enormously significant, and on the higher timeframe charts, the bulls remain dominant.
The pullback did not have strong selling volume, and the structure also remained bullish. The lack of volume was captured on the OBV, which barely declined in the past few days. It saw large gains in March to highlight heavy demand.
The RSI was dropping toward neutral 50 and could sink below it as well. If it does, it would likely indicate an XRP move toward $0.45. A set of Fibonacci retracement levels (cyan) were drawn for the breakout move and showed the 61.8% and 78.6% retracement levels to lie at $0.45 and $0.48.
Hence, XRP buyers can watch out for a retest of this golden pocket. Meanwhile, lower timeframe bears can look for entries, but they must be extra cautious as they will be trading against the higher timeframe trend.
Realistic or not, here’s XRP’s market cap in BTC’s terms
MVRV-ratio falls after three-month highs
XRP’s 30-day MVRV ratio shot skyward to reach 20% but dropped after the quick pullback. This showed that profit takers were adding to the selling pressure. The weighted sentiment metric was flat and has been since February, but this did not deter the breakout past $0.42.
The 90-day dormant circulation saw a spike when XRP faced rejection, pointing to the likelihood of a large wave of selling pressure. Overall, the metrics showed that some more selling could be seen for XRP.