XRP promises further gains, but only if…
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- XRP recorded 9.1% gains over the past 48 hours.
- $467.40k worth of short positions liquidated.
Ripple’s [XRP] bullish march made significant progress as the altcoin recorded 9.1% gains over the past 48 hours. A recent price report highlighted the possibility of further gains for XRP after bulls successfully defended a good portion of the March gains.
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Bitcoin [BTC] holding steady at the $26.5k price zone over the same period solidified the bullish charge, as XRP’s price edged toward a key resistance level.
Bulls ramp up the momentum
Despite the overall market conditions, XRP has been on an uptrend since 16 May after it found support at the $0.4172 level. While the uptrend has experienced significant pullbacks at the $0.5708 and $0.5401 levels, recent price action has shown that bulls were on the march again.
XRP posted four successive bullish candles on the 12-hour timeframe to rally toward the $0.4940 resistance level. This bullish activity might have been influenced by XRP’s non-classification as a security in the ongoing SEC lawsuit.
The on-chart indicators suggested that bulls are likely to flip the $0.4940 level to support. The RSI stayed at the neutral 50 mark despite a brief dip. The OBV also maintained its uptrend to signal steady demand behind XRP. The CMF posted a reading of +0.17 as of press time. This showed steady capital inflows into XRP.
A session close above the $0.4940 level on the higher timeframes will signal a strong opportunity for buyers to reclaim the $0.5401 level. However, a key challenge will be the bearish order block just below the level.
On the flip side, bears will look to halt the bullish momentum at $0.4940 with a price rejection at the level. This could flip XRP bearish with sellers targeting the $0.4451 and $0.4172 support levels.
Speculators back bulls
A look at the 12-hour long/short ratio data from Coinglass revealed market sentiment leaned slightly toward bulls. As of press time, longs held a 50.35% advantage.
Read Ripple’s [XRP] Price Prediction 2023-24
The liquidation data over the same period also showed shorts suffered significant losses. $467.40k worth of short positions were liquidated compared to $171.04k of long positions.
These price moves by market speculators could intensify the buying pressure on XRP, leading to more gains in the mid/long-term.