Analysis
XRP bulls can bid at this level as weak BTC forces retracement
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.
- The 50% Fib level has stopped two recent pullbacks.
- The futures market’s buying volumes were slow but steady.
Ripple’s [XRP] value remained above $0.65 post its legal win against the US SEC. This led XRP to experience a sharp upswing, reaching a recent high of $0.94. However, the weakening Bitcoin [BTC] has forced XRP to retrace to 50% Fib level.
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At the time of writing, BTC struggled to reclaim the $29.5k range low, further reinforcing the sellers’ edge. However, the definitive price action and direction could be determined on Monday, 31 July.
Is another rebound on the cards?
Source: XRP/USDT on TradingView
The 50% Fib level of $0.675 has been a crucial rescue for bulls during the past two price pullbacks. The first pullback from the recent high of $0.94 eased near $0.675. After a price rejection at $0.85, the second retracement also eased in the same area.
So, if the trend continues, bulls could see respite near the 50% Fib level of $0.675. The corrective rebound could rally towards a lower high at $0.85 or a recent high of $0.94. If so, buying at the 50% Fib level with conservative and aggressive targets at $0.80 and $0.85 could offer a good risk ratio.
A drop below the immediate support of 50% Fib level ($0.675) will invalidate the above bullish thesis. In such a bearish scenario, a retest of $0.58 could be feasible, especially if BTC registers sharp losses in the coming hours/days.
The Relative Strength Index wavered around the neutral level in the last few days. Over the same period, the Chaikin Money Flow was rejected at zero and moved southwards. It underscores a muted XRP’s buying pressure and strong capital outflows.
How much are 1,10,100 XRP worth today?
Buying volumes were slow but steady
Source: Coinalyze
The overall posture in the futures market was mildly bullish based on the aggregated funding rate and CVD (Cumulative Volume Delta). Notably, the CVD edged up slowly but steadily, emphasizing consistent but slow buying.
The funding rates were also positive in the last few days, reinforcing an overall bullish bias for the altcoin in the futures market. So, the 50% Fib level could offer a great buying opportunity if BTC doesn’t record more losses.
