XRP rises above $0.45 resistance; can bulls initiate an uptrend
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- The structure was bearish, but the momentum began to shift bullish.
- Traders must train a wary eye on the price movements of Bitcoin.
Ripple [XRP] was in a downtrend over the past month following the rejection from $0.53 on 19 April. The market structure on the daily timeframe was bearish, but the recent lower high was just within reach of the XRP bulls.
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If they can break the structure, the indicators suggested that they will likely force a solid move upward. However, the weakness of Bitcoin [BTC] on the daily charts was something investors must be wary of. A BTC selloff can undo the hard work of XRP buyers in May.
XRP continued to labor under a bearish structure
Based on the rally from $0.347 to $0.585 in late March, a set of Fibonacci retracement levels was plotted. It showed the 61.8% retracement level at $0.438. Following the rejection in April, XRP sank to the $0.423 support level.
In the past few days, the bulls have forced a move above the 61.8% level. Moreover, their persistence meant that the recent lower high at $0.4706 was likely to be breached soon. A daily session close above this level will flip the market structure on the daily chart to bullish.
The RSI climbed back above neutral 50 to show that upward momentum was getting strong. The OBV also ascended over the past week, highlighting the buying pressure behind XRP. Trading volume was above average as well during the upward move, underlining bullish sentiment.
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Surging CVD showed huge demand behind XRP
Data from Coinalyze also pointed toward impending gains. The spot CVD has risen rapidly in May, even though XRP did not break the market structure on the higher timeframes. This was an indication that a breakout move could materialize soon.
The Open Interest also rose hand in hand with the prices since 15 May, denoting strong bullish sentiment amongst speculators.