Bitcoin faces profit-taking, but 4 reasons why BTC’s rally isn’t over yet!
Analysis
XRP buyers can expect some gains IF this condition is met
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.
- 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
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
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.
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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.
