XRP sees notable capital inflow but can the bulls break $0.55?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- XRP bulls have reason to hope for a rally
- The intense resistance zone overhead could stall bullish efforts
Over the past two weeks, XRP saw a bounce in prices from the $0.46 level. It climbed above $0.513 on 20 September. Traders could watch XRP more closely as this move showed bullish intent from market participants.
Is your portfolio green? Check the XRP Profit Calculator
In other news Ripple’s [XRP] CTO David Schwartz faced some questions about the claims that XRP was becoming a centralized entity. In his response, Schwartz said that these claims “all just seem like random assertions” and had no evidence to back them up.
The bearish order block at $0.54 looms large for XRP
The move above $0.513 flipped the market structure from bearish to bullish on the daily chart. XRP also formed a higher low at $0.4864, marked by the dotted orange line. A fall below this level would shift the structure to a bearish one.
Despite the bullish structure at the time of writing, XRP’s Relative Strength Index (RSI) obstinately remained below the neutral 50 level. It signaled that upward momentum hadn’t gained control yet. On the other hand, the Chaikin Money Flow (CMF) was well above +0.05, indicating heavy capital inflow to the market.
The $0.513-$0.55 region represented a bearish order block from late August on the 1-day chart. As such, it is expected to oppose the bulls firmly despite the bullish structure XRP has at press time. Hence, continued gains could take time to materialize.
The fall in active addresses shows reduced interaction from users
On 31 August, the mean coin age took a nosedive and the age consumed metric saw a huge leap upward. They showed that a large wave of selling occurred at that time. Since then, the mean coin age has trended higher and the age consumed saw no notable spikes.
Realistic or not, here’s XRP’s market cap in BTC’s terms
While it was a sign of XRP accumulation across the network, the active addresses have continued to slump since late July. The downtrend was not yet arrested, and the worry among investors was that the reduced crowd interaction could negatively impact market sentiment.