XRP falters at support level – can bears take advantage?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- XRP hovered over a key support level, as bears looked to flip the market structure.
- Market speculators remained hesitant, as evidenced by the tight margin on long/short ratio.
Ripple’s [XRP] price action dwindled from the price high after its favorable ruling as a non-security token. After hitting a 2023 record of $0.940 on 13 July, XRP has twice found the $0.850 resistance a tough obstacle to overcome.
Realistic or not, here’s XRP’s market cap in BTC’s terms
With prices hovering above the $0.680 key support, a break below that level could signal a shift in momentum from bullish to bearish.
Bulls and bears tussle between key price levels
Previously, the price correction after XRP’s massive pump on 13 July found some footing at the $0.680 price zone. This allowed for another bullish push. However, the rally met stiff resistance at the $0.850 level with bears taking over strongly to force prices down.
Although the bulls mounted a defense on the first retest of the $0.680 support, the on-chart indicators pointed to a continuation of the bearish trend. The Relative Strength Index (RSI) hovered over neutral 50, despite the slight price push off the support level. This showed a lack of buying pressure at key price levels.
The Moving Average Convergence Divergence (MACD) also posted a bearish crossover on 21 July. Even though the Moving Averages remained above the zero mark, the MACD displayed red bars below the zero level to indicate growing bearish strength.
A break below the $0.680 support could see XRP free-fall toward $0.563. On the other hand, if bulls sustain prices above the support level, buyers could be spurred to attempt another push for the $0.850 resistance level.
Longs and shorts evenly matched
Read Ripple’s [XRP] Price Prediction 2023-24
The tussle on the price charts extended to open contract positions in the futures market. Data from Coinglass on the 12-hour timeframe showed that shorts held a marginal 50.08% share advantage over the longs’ 49.92% share.
The hesitant sentiment by market speculators leaves a window of opportunity for either bears or bulls to take advantage of, based on Bitcoin’s price action.