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XRP buyers can expect some gains IF this condition is met

2min Read

XRP buyers have much to consider about the crypto’s price movements.

XRP buyers can expect some gains IF this condition is met

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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • XRP bulls registered an impressive bounce from the 61.8% retracement level
  • Another retest of the $0.6-zone might yield a weaker response from buyers

XRP saw steady gains in October and November, but the latter half of November and December did not see such a strong rally. Instead, the last four weeks saw prices pull back to an important retracement level before bouncing higher.

In addition to the higher timeframe support zone from $0.57-$0.6, the $0.528 and $0.549-levels were also important support levels that long-term investors could keep an eye on.

$0.6 region has been critical over the past month

XRP expected to bounce from this support zone, but are the bulls strong enough?

Source: XRP/USDT on TradingView

XRP’s rally from $0.4729 to $0.7324 was used to plot a set of Fibonacci retracement levels (pale yellow). The 61.8% retracement level was at $0.572 and was tested as support on 21 November. It was followed by a bounce to $0.7 on 9 December, but Bitcoin’s losses saw XRP fall lower as well.

However, this is not to say selling pressure has inundated the XRP market. The On-Balance Volume (OBV) formed a higher high as prices formed a lower high over the past month, a sign that buyer strength has been on the rise.

The RSI was at 48 and suggested a shift in momentum in favor of the bears. On the other hand, the market structure of XRP was bullish. It would be flipped bearish upon a daily session close below $0.572.

Decline in the MVRV ratio a positive sign

XRP expected to bounce from this support zone, but are the bulls strong enough?

Source: Santiment

The development activity took a sharp dip in recent days, but this was not a cause for concern given it is the festive season. Network growth has been rising since October, but conversely, the 30-day active addresses have trended south since July. It saw a minor uptick in late October and early November.

Is your portfolio green? Check the XRP Profit Calculator

The MVRV ratio climbed near late-July highs during the rally past $0.7 back in October. Since then, the metric has retreated closer to the zero-mark, but the price of XRP was near the $0.7 area once more. This suggested that profit-taking activity might not be as intense as the last time XRP pushed above $0.7.


Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
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