Analysis
XRP sees momentum slide in bullish favor as prices drifted above $0.45
Posted:
| Last updated: January 30th, 2024
Journalist
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- The market structure was bearish.
- The defense of the mid-range support gave bulls some hope.
Over the past two weeks, XRP traded within a range that extended from $0.44 to $0.48. The mid-range mark at $0.46 served as support over the past week, and the momentum indicators showed bears began to lose their grip on the market.
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A report from earlier this week noted that a drop to the range lows could present a buying opportunity, but such a drop did not materialize. Instead, the buyers defended the $0.45 level of support strongly.
XRP continued to trade within a range but the bearish momentum was weakening
Source: XRP/USDT on TradingView
The 12-hour chart showed that the price action perspective has taken a small shift and now favored the bulls slightly. This was because the H12 trading session on 5 May closed at $0.47, slightly above the recent lower high at $0.466.
The trading volume was average, which showed the session close had some legitimacy.
The Awesome Oscillator also began to show weakening bearish pressure. Since 24 April, the AO rose closer and closer toward the zero line. It was unbeaten at the time of writing, but the CMF was also above +0.05. This showed significant capital flow into the market.
The rising AO hinted at a possibility that XRP could rise above the $0.465 level once again, which was a lower timeframe resistance. This could see XRP rally toward the range highs and possibly beyond.
The lower timeframes showed rising demand for XRP
Source: Coinalyze
The 1-hour charts showed the Open Interest has fluctuated over the past week. Yet the speculators were not decisive enough to move to either the bullish or the bearish camp. Meanwhile, spot bidders were extremely strong and the spot CVD climbed rapidly higher.
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Therefore, the lower timeframes showed demand was present but sentiment was neutral. Bitcoin’s failure to climb above $29.8k meant XRP could slump in the coming days, despite the demand for the asset.
Hence, XRP bulls must be prepared for a rejection from the $0.47-$0.48 region as well. In the event of a BTC move above $30k, XRP’s chances of a breakout past $0.48 would increase dramatically.
