XRP stuck in this range – what can traders expect?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- XRP continued to trade within a compact range after another pullback at the range high.
- The rising Mean Coin Age hinted at long-term accumulation, which could initiate a breakout.
Ripple [XRP] struggled to break out of the compact price range, with its price action stumbling at the range high again.
Realistic or not, here’s XRP’s market cap in BTC terms
A previous price report by AMBCrypto highlighted the possibility of a range breakout after XRP posted gains of 9.3% over 24 hours to take it to the range high. However, the buying pressure stalled and bears hit back with another dip to keep XRP confined within the range.
Meanwhile, Bitcoin [BTC] consolidated at the $34k price zone after the pullback from the $35k price zone.
Buying pressure not enough for critical range breakout
XRP’s current price range extends back to August. Price action has traded between the range low of $0.45 and the range high of $0.55 with a mid-range of $0.5. Despite the growing bullish sentiment, XRP has been unable to break out due to the bearish blocker at the $0.55 price zone.
This led to a 5% dip from the range high over the past 48 hours. However, buyers still had the advantage based on the on-chart indicators.
The Relative Strength Index (RSI) stood at 60, which hinted at good buying pressure, despite the dip out of the overbought zone. Likewise, the Chaikin Money Flow (CMF) highlighted the consistent capital inflow.
With price trading at $0.543, these indicators signaled that a breakout could still happen in the long term. As such, sellers should be cautious of the buying bias present for XRP.
A bullish breakout would see buyers target the $0.6 to $0.65 price levels, while an extension of the current dip could see XRP re-test the mid-range support of $0.5.
Mean Coin Age continued to trend upwards
Read Ripple’s [XRP] Price Prediction 2023-24
The upward movement of the Mean Coin Age (90d) suggested that long-term holders were accumulating XRP. This could help the prospects of a bullish breakout in the long term.
Furthermore, the 30d Market Value to Realized Value (MVRV) ratio showed that short-term holders were in slight profits. With the potential for more profits, if the range high is broken, buyers could be incentivized to increase the buying pressure in the coming days.