XRP fueled upward by bullish sentiment – is another 5% move upward likely?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- XRP traded within a range and was about to push toward the highs at press time.
- Indicators showed strong bullish momentum.
Bitcoin [BTC] has flipped the $24.2k area to support over the past four days. The plunge to $23.5k on 17 February was reversed. The higher timeframe market structure was bullish for Bitcoin. This inspired confidence in the altcoin market. Ripple [XRP] has been bullish in the past week as well.
How much are 1, 10, 100 XRP worth today?
XRP has traded within a range from $0.33 to $0.415 since November. The lower timeframe market structure of XRP favored the buyers. There were signs of further gains for the asset in the coming days.
The $0.4 mark is likely to be breached soon
The three-month long range meant the range highs will likely pose stern resistance to the bulls. A breakout from a longer range is more powerful, but stronger bullish sentiment is required to force that breakout. As things stand, that push might not have arrived.
Therefore, buyers of XRP from $0.4 or $0.37 can look to take a profit in the $0.42-$0.45 region. In particular, a bearish order block on the four-hour chart stood at $0.415, highlighted in red. This order block was formed in early February.
The H4 RSI showed bullish momentum in play with a reading of 56. It dipped a couple of times beneath the neutral 50 mark but was quick to recover. This suggested that a move upward was likely. The A/D line has also been in an uptrend over the past two weeks, when XRP rallied from $0.366.
Together, the indicators showed bullish momentum and steady demand behind the rally. Another 5% move upward from $0.399 will take XRP to $0.42.
Is your portfolio green? Check out the XRP Profit Calculator
The rising Open Interest reinforced bullish sentiment
The futures market also showed signs of bullish momentum. The one-hour chart from Coinalyze showed that Open Interest has been climbing since 16 February. In this time, XRP rallied from $0.38 to $0.408. The ascending trend on the OI meant that capital flowed into the market and highlighted bullish strength.
At the time of writing, this strength has not yet waned. The predicted funding rate was also positive to underline further gains were anticipated. Alongside the short-term market structure, it was likely that XRP would retest its resistance at $0.42 soon.