XRP witnesses rejection at the $0.55 mark again as structure shifts bearish

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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.

  • XRP had shown short-term bullish intent last week but has since retraced all the gains from late September
  • If the bulls can’t gather their strength and defend $0.46, a much deeper drop could be initiated

Ripple [XRP] faced overwhelming bearish pressure at the $0.55 region. It showed signs of wanting to climb above the territory that had served as resistance since late August. However, Bitcoin’s [BTC] failure to consolidate recent gains meant XRP was dragged southward as well.


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In a previous price report by AMBCrypto, XRP’s short-term bullishness was underscored. These bullish expectations have since been invalidated. What happened, and where on the chart can the bulls find solace?

An XRP retreat to the $0.46 level is on the cards

XRP witnesses rejection at the $0.55 mark once again and structure shifts bearish

Source: XRP/USDT on TradingView

The one-day chart saw a bearish shift in structure. This came after the rejection at the one-day bearish order block at $0.55.The recent higher low was formed at $0.4912, with the $0.505 being another short-term significant support. The price action of the past few hours propelled XRP below $0.49.

The Relative Strength Index (RSI) had poked its head above the neutral 50 mark briefly in early October but fell below it the previous weekend. The On-Balance Volume (OBV) also presented a hopeful picture last week as it had beaten local resistance (dotted orange). This signaled buyers were gaining strength, but the OBV took a quick downturn and invalidated this idea.

To the south, the $0.46 support level was likely to be tested again. It has served as support since mid-June. But if the OBV continued to trend lower, this support level could be broken as well. This could see XRP retreat to $0.41, a support level previously tested in March.

Does the decline in active users bode ill for XRP bulls?

XRP witnesses rejection at the $0.55 mark once again and structure shifts bearish

Source: Santiment

The age consumed metric saw a sharp increase on 30 September. The inference was that a huge number of tokens were moved. It was likely a precursor of the large wave of selling that commenced on 4 October.


Realistic or not, here’s XRP’s market cap in BTC’s terms


The mean coin age also took a hit on 30 September but has recovered over the past two weeks. Conversely, the active addresses count has been in a decline since late August. The Market Value to Realized Value (MVRV) ratio was also negative. The Mean Coin Age showed accumulation was in progress, but the other metrics suggested investors were not particularly confident about XRP.



Author: Akashnath S ::: Source link


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