XRP bulls struggle to breach $0.5 resistance – What next?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- XRP presented a bearish market structure and a downtrend on the 1-day chart since early August.
- $0.5 was a resistance that the bulls couldn’t breach last week and a retest could offer a shorting opportunity.
Ripple [XRP] has retraced all the gains that it posted when news of its legal victory against the U.S. Securities and Exchange Commission (SEC) broke out. This was a sign of strength from the bears. Bitcoin [BTC] was trading at $25.8k at press time and exhibited a downtrend as well.
Read Ripple’s [XRP] Price Prediction 2023-24
The sentiment on the price charts remains bearish
Despite these positive developments recently, the price action of XRP showed that bearish dominance prevailed. The market structure on the 1-day chart was bearish and has been this way since 2 August.
The OBV was in a downtrend alongside the price over the past month. This was evidence that the selling volume was strong and that buyers had little strength in the higher timeframes.
The RSI also signaled strong bearish momentum with a reading of 27 on the 1-day chart. A set of Fibonacci retracement and extension levels (pale yellow) was plotted based on the XRP rally in July. The 23.6% southward extension level sat at $0.353, which was close to the HTF support at $0.347.
September witnesses a rise in mean coin age, but is this enough for a rally?
The mean coin age metric took a sharp tumble on 30 August and 1 September but has begun to climb higher again. This was a sign of network-wide accumulation, but does not guarantee an uptrend will occur.
The dormant circulation saw a spike on 1 September but has since settled, showing a lack of large selling waves in recent days.
How much are 1, 10, or 100 XRP worth today?
The active addresses count has slowly declined over the past month and could be reflective of reduced user activity in the network. It could also foreshadow reduced demand for the token.
The price action of XRP and Bitcoin showed that the bears were in the driving seat and the trend pointed downward.