Why XRP bulls should be confident of a move north
The XRP bulls have managed to defend a good chunk of their March gains, and hinted that further gains were possible.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- XRP bulls have maintained steady buying pressure despite the wider market sentiment.
- Further losses in the coming days were possible, but recovery looked likely after a retest of a critical support level.
Ripple’s CEO Brad Garlinghouse’s argument that XRP is not a security saw a large boost after the William Hinman document went public. On the lower timeframes, the trend had shifted bearish as the sentiment across the market darkened.
Read XRP’s Price Prediction 2023-24
XRP saw a sharp move higher in March alongside the rest of the market. While the rest of the market has sunk into a downtrend since then, especially in late April, the XRP bulls have managed to defend a good chunk of their March gains.
The loss of the $0.5 was a blow but bulls still have ammunition to fight back
Based on the March move to $0.585 a set of Fibonacci retracement levels was plotted. It showed the 78.6% level at $0.398 would be the last bastion of defense on the higher timeframes. The steady uptrend on the OBV in recent months was encouraging and showed demand for XRP.
The daily RSI dropped below neutral 50 to signal a shift in momentum. Yet, the market structure remained bullish, and the shift in structure to bullish was highlighted in green at the $0.488 level in late May. A drop below $0.443 would change this. Meanwhile, the 4-hour chart revealed that a lower timeframe downtrend was already in progress.
Hence, bulls can wait for a bullish shift on the lower timeframes before looking to buy XRP. It was still possible that the $0.443 support level could be visited, and the reaction from the buyers can be assessed before looking for opportunities.
The network growth began to tick higher toward the end of May
In the latter half of May, both the social dominance and network growth metrics began to rise higher. If this trend continued, especially in terms of growth, it would likely spur further demand for XRP.
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The mean coin age took a sharp dive two weeks ago but began to pick up once more, showing network wide accumulation. This need not translate into immediate price gains. Hence XRP bulls can wait for a breakout past $0.56, or a retest of the $0.44 region, before looking for buying opportunities.
