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Analysis

Some respite for XRP, but here’s how long the good times might last

2min Read

XRP bulls hoped that the range formation at $0.5 could result in another rally to breach the $0.6-resistance. However, the past week’s selling activity broke this bullish hope.
Posted: | Last updated: January 30th, 2024
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Som respite for XRP, but here's how long the good times might last
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Journalist
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.

  • Bulls were unable to mount a significant fight at the range lows, highlighting seller strength
  • XRP seems likely to follow BTC south on the price charts

Bitcoin [BTC] was unable to defend yet another support level at $27.7k, reinforcing the bearish pressure. This was reflected across the crypto-market, with altcoin prices continuing to tank. XRP bears had control of the momentum, and a bounce towards the $0.465-level would present a selling opportunity.

Read XRP’s Price Prediction 2023-24

XRP bulls hoped that the range formation around the $0.5-area could result in another rally to breach the $0.6-resistance. However, the fall under the mid-range mark flipped the structure to bearish.

Slump beneath the range lows meant a revisit to $0.4 is possible

XRP finds respite at $0.45 but more losses remain likely

Source: XRP/USDT on TradingView

In April, XRP ranged within the $0.48-$0.528 levels (white). This, after a strong rally in March that took XRP from $0.36 to $0.58. The formation of a near three-week range after such a strong pump pointed towards a phase of accumulation or distribution.

There was evidence that this was accumulation, as demand was present behind the asset. However, the shift in sentiment after Bitcoin fell below $30k was too much for the bulls to cope with. And, they ceded the range lows.

Is your portfolio green? Check XRP Profit Calculator

The Awesome Oscillator did not yet show a bullish divergence, so we can expect the bearish momentum to continue over the weekend. The $0.45-support zone could stall the bears. The CMF highlighted heavy capital flows out of the market. Hence, further losses are likely for XRP. The next levels of support lay at $0.42 and $0.406.

CVD took a U-turn after demand in mid-April

XRP finds respite at $0.45 but more losses remain likely

Source: Coinalyze

The Open Interest nosedived in recent days, alongside the price. The OI showed no signs of recovery when XRP saw a minor bounce from $0.48. This was a sign that bullish speculators chose to stay out of the market.

The spot CVD had been on the rise earlier this month. However, the past week’s selling activity brought this metric crashing down. With this decline, the bulls’ hopes of a rally past $0.6 were broken as well.

 

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Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
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