XRP sheds 3.2% as bearish pressure persists
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- XRP signaled strong short-term bearish sentiment.
- The $0.5 level could prove pivotal in deciding XRP’s trend for the upcoming week.
Ripple [XRP] saw a massive jump in the number of active addresses on 8 October. Despite positive news over the weekend, the price has been on a bearish trajectory. It was sinking back toward a key level at $0.505.
Read Ripple’s [XRP] Price Prediction 2023-24
A report from AMBCrypto dated 6 October noted that a drop toward $0.5 was possible due to the presence of a higher timeframe resistance at $0.55. This has been the case so far, but can the bulls stem the losses?
The Fibonacci level and the local low show $0.5 is extremely important
Not only is the $0.5 a psychological round number support but also close to the 78.6% Fibonacci retracement level. These Fib levels were plotted based on the late September rally to $0.55 and continued to be significant in the short term.
However, neither the OBV nor the RSI encouraged the bulls. The RSI dipped swiftly below neutral 50 to stand at 33 at press time, showing downward momentum was strong. The OBV has also been in decline in October.
The lack of buying volume meant that the $0.5 level might not hold the bears at bay. In that case, the $0.49 level could serve as support, but the bias would have shifted resolutely in favor of the sellers.
Sentiment has turned bearish in recent hours as XRP endures more losses
Realistic or not, here’s XRP’s market cap in BTC’s terms
XRP was trading at $0.51 at the time of writing but was dropping fast. The past few hours showed a fall in the Open Interest. Together they signaled discouraged longs. The spot CVD was also in a downtrend.
The lack of demand on both the spot market and the trend of the OBV showed that XRP bulls were weak. A 4-hour trading session close below $0.5 would indicate that XRP is likely headed toward $0.49 and lower.