Will XRP’s strong buying pressure influence the bulls to push for more?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- XRP saw an influx of buying pressure over the past few days
- The resistance levels at $0.5 and 0.55 could rebuff the bullish efforts
A recent report highlighted Ripple’s [XRP] intent to expand its presence and improve upon traditional settlements. In the long term, if Ripple can begin to succeed in this venture, it could drive the demand organically for XRP.
Read Ripple’s [XRP] Price Prediction 2023-24
In the near term, the price action of XRP did not inspire much bullish confidence. It was trading at the $0.5 psychological resistance once more and has not yet flipped the market structure bullishly.
The recent bounce saw a much-needed influx of capital into the XRP market
The $0.4648 level was the place where the July rally to $0.938 began from back in July. The fact that all these gains have been retraced showed that the market was still bearish on the longer time horizons. While this could take months to shift, it need not discourage short-term traders.
The $0.5076 level is the one that XRP bulls must beat to flip the market structure bullishly on the 4-hour chart. The Relative Strength Index (RSI) was above neutral 50 over the past week, highlighting strong bullish momentum. The Chaikin Money Flow (CMF) also saw a sharp bounce in recent hours to indicate a notable inflow of capital into the market.
If this trend can continue, XRP stands a chance of breaching the resistance at $0.55. The $0.52-$0.566 was a daunting resistance zone for bulls. It was derived from the 12-hour chart, and a move above it would signal an uptrend could commence.
The uptick in buying pressure suggests a shift in sentiment
Since 12 September, the bulls fought hard to force a recovery for XRP. The price began to climb from $0.465 to stand at $0.5 at press time. During the past week, the Open Interest trended higher as well. The past few hours saw both the OI and the price jump noticeably, which was a sign of strong bullish sentiment in the market.
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The spot CVD also witnessed a climb over the past ten days. This indicated there was a good chance that XRP bulls had the strength to push prices to the $0.55 level, but it was unclear if they could post further gains.