XRP’s bullish after hitting $0.55 – Where will it head next?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- XRP has a strong bullish outlook on the higher timeframe price charts.
- A near-term pullback toward $0.55 could be in the making.
Ripple [XRP] was the fifth largest cryptocurrency at press time with a $32.8 billion market capitalization. AMBCrypto previously reported that whale accumulation was going strong, and new wallet addresses were being created.
Read Ripple’s [XRP] Price Prediction 2023-24
This positive sentiment led to XRP climbing above a resistance level that has been in play since August. An analysis of XRP’s price action on 30 October revealed that a bullish breakout was imminent. This analysis has since been vindicated.
The Fibonacci levels showed a short-term retracement could commence
The $0.55 level was the high of the two-month range (green). The move above this level on 24 October saw the one-day market structure shift bullishly. The past week saw XRP rally from $0.5325 to $0.6262, but the past few hours saw XRP bulls repulse at least momentarily.
If this were the beginning of a pullback, a move to the $0.567 and $0.552 levels could occur. A retest of these retracement levels would offer a buying opportunity as the daily market structure remained bullish.
The RSI was well above the neutral 50 mark to highlight strong upward momentum. The On-Balance Volume (OBV) also trended higher since mid-October. The OBV signaled buying volume has been higher and supported the idea that XRP could register more gains.
The positives and negatives for long-term XRP bulls from on-chain metrics
One of the positives was the development activity. Although it saw peaks and troughs, it has continued regardless of the price action and reflected the team was hard at work with maintenance and upgrades. However, the weighted sentiment has dropped into negative territory once more.
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Social media engagement leaned in favor of the bears, and the age-consumed metric saw an enormous spike on 31 October. This signaled a large number of tokens moved across addresses, and was a likely signal of a large wave of selling.
Combined with the drop in mean coin age in the past few days, there was a good likelihood of XRP falling toward $0.55.