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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
Ripple [XRP] posted gains of 5.4% in the past 24 hours to smash through the $0.494 resistance level. Buyers have been encouraged by the altcoin’s rally from the $0.455 support level on 25 May.
With Bitcoin [BTC] pushing from $26.5k to $27.7k over the past 48 hours, there is a good chance XRP could record more gains in the short term.
XRP bulls flip short-term bias to bullish
Source: XRP/USDT on Trading View
The four-hour chart highlighted the upper hand XRP bulls have held over the past two weeks. Price rallied from the $0.417 support level on 17 May with two strong bullish candles. This flipped the $0.455 resistance to a support level.
A retest of the new support level spurred bulls to claim another resistance, with the $0.494 level giving way to bullish momentum.
Bulls would be looking to claim a third resistance level with on-chart indicators supporting another bullish charge. The RSI climbed strongly into the overbought zone and stood at 82 as of press time. This signaled intense buying pressure on XRP.
The OBV also registered a $341.43M uptick in volume within the past 24 hours. In addition, the CMF highlighted the buying pressure behind XRP with a reading of +0.20.
XRP’s price action and chart indicators inferred that further gains were possible. The next target for bulls is the April high of $0.547. However, bears would be looking to use the $0.540 resistance and bearish order block under it to stall the bullish momentum.
How much are 1,10,100 XRPs worth today?
Bullish accumulation made market sentiment clear
Source: Santiment
A view of XRP’s seven-day Market Value to Realized Value (MVRV) ratio on Santiment showed that XRP had crossed into overvalued territory. The MVRV metric, at press time, stood at approximately 5.17%. This showed that XRP buyers were making significant gains.
The 90-day Mean Coin Age has also been on an uptrend since 1 April, signaling a network-wide accumulation over the past two months. This could see bulls drive prices higher in the short/mid-term. Traders should closely monitor the market conditions and developments around the XRP vs SEC case.
