Analysis
XRP reaches $0.55 again – Will a breakout occur?
Posted:
| Last updated: January 30th, 2024
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- XRP rallied to the range high of $0.55 but a breakout was yet to happen.
- Demand in the futures market showed growing bullish sentiment in the near term.
Ripple [XRP] struggled to break above the range high, as the altcoin continued to trade between $0.46 to $0.55. Over the past week, buyers rallied to push past the mid-range point with 9.3% gains, taking XRP to the range high.
Realistic or not, here’s XRP’s market cap in BTC terms
However, the selling pressure at the $0.55 price zone has prevented a breakout thus far. In the wider crypto market, Bitcoin [BTC] continued to trade above $34k with solid demand sustaining the bullish sentiment.
Bulls attempt to break above $0.55 bearish blocker
Source: XRP/USDT on Trading View
The 12H timeframe showed that bulls had found the $0.55 price hurdle a tough level to scale. This was evident in the bearish rejections at the price level on 29 September and 3 October.
The presence of a bearish order block (OB) at the $0.55 price zone has limited the bullish rally with pricing ranging at the level over the past 48 hours.
Despite the bearish activity at $0.55, the chart indicators pointed to growing bullish momentum. The Relative Strength Index (RSI) trended just at the overbought zone, highlighting the strong buying pressure.
In addition, the Chaikin Money Flow was positive, hinting at good capital inflows while the uptick in the On Balance Volume (OBV) suggested growing buying volume in recent days.
Thus, the buying pressure could result in buyers clearing the bearish order block with short-term profit targets at $0.6 to $0.65 price levels.
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Short-term demand for XRP revealed by longs dominance in the futures market
Source: Coinglass
The four-hour timeframe of the long/short ratio showed the rising bullish demand, as buyers bid to scale the $0.55 price hurdle. As of press time, longs were in the majority, holding 51.21% of the open contract positions.
This highlighted the bullish sentiment in the near term. Consequently, a move above $0.55 appears likely with a candle close above the range high providing further long opportunities.
