Analysis
XRP bulls are fighting short-term bearish trend and yet…
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.
- Short-term traders can look to trade the XRP range.
- Traders and investors looking to build a long position can do so in the $0.46 region but a rally was not yet in sight.
XRP has been relatively quiet in the market over the past two weeks. In late May and on certain days in the middle of June, XRP was one of the consistently bullish performing altcoins on the 4-hour timeframe.
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The price action suggested that although the trend has shifted bearishly, a recovery was not out of sight for the bulls. Until that happens, traders can look to buy and sell within the $0.46 support and $0.49-$0.5 resistance.
XRP could be in an accumulation phase beneath $0.5
Source: XRP/USDT on TradingView
The higher timeframe price action of XRP such as the 1-day showed the asset has trended upward since March. Since mid-May, the bulls have found it harder to get the rally going. They achieved the local high of $0.566 on 13 June but the price has slumped lower since then.
On the 4-hour chart, both the market structure and trend of XRP were bearish but the buyers have defended the $0.46 support zone with vigor. During this time, XRP saw a brief but powerful surge to $0.528 on 22 June before falling to $0.45 toward the end of June.
The OBV was in a slow downtrend as well, showing that the sellers had the upper hand. The RSI was also below neutral 50 in the past few days to highlight bearish momentum. Yet, the bulls refused to cede the $0.46 zone.
The price action of XRP saw lowered volatility in the past two weeks. The $0.5 level is psychologically and technically important, and the daily timeframe chart showed bulls had an advantage since March. Therefore, XRP could be in a phase of accumulation- but the OBV does not reflect this.
The spot CVD is dormant once more but does its slope encourage buyers?
Source: Coinalyze
In the past week, the Open Interest has oscillated from $420 million to $450 million. On 7 July it began to rise alongside XRP prices, which climbed a miserly 1.47% from $0.4642 to $0.4725. Yet, the rise in OI was an indication of bullish conviction, although a very weak one.
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The spot CVD chart also climbed in sudden spurts on 4 and 7 July. This showed buyers outnumbered the sellers in the lower timeframes. It was possible that this could be the beginning of a slow rally.
Swing traders can wait for a breakout past the $0.5 zone. Moreover, the price must beat the recent lower high at $0.5272 before an uptrend can be initiated.
