XRP traders need to watch out for this bearish order block from May

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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 forms yet anoth­er range after break­ing above the pre­vi­ous one in September
  • Will the range highs see a break­out or a rejec­tion for XRP?

XRP saw pos­i­tive sen­ti­ment in the mar­ket in Sep­tem­ber, but was unable to match that momen­tum in Octo­ber. The SEC’s law­suit against Rip­ple Labs appeared to lean in favour of the defen­dants. Coin­base filed an ami­cus brief in favor of Rip­ple Labs, Inc. Sup­port gath­ered for Rip­ple as CEO Brad Gar­ling­house tweet­ed that mul­ti­ple enti­ties have sub­mit­ted ami­ci briefs.


Here’s AMBCrypto’s Price Pre­dic­tion for XRP in 2022–23


There seemed to be spec­u­la­tion that exchanges that had delist­ed XRP in the past might be in a posi­tion to re-list the coin once more. In turn, spec­u­la­tors might find a rea­son to flip to bull­ish on XRP.

Here is why the range highs could offer a shorting opportunity

XRP sees lowered volatility on higher timeframes, here is what it means for investors

Source: XRP/USDT on TradingView

XRP has trad­ed with­in a range from mid-Sep­tem­ber. This range (blue) extend­ed from $0.42 to $0.55, with the mid-range val­ue at $0.48. In May, the price saw a brief bounce before con­tin­u­ing its pri­or down­trend. This bounce formed a bear­ish order block. More­over, this region had con­flu­ence with the psy­cho­log­i­cal $0.5‑level of resistance.

Hence, any bull­ish advances past $0.5 could be dif­fi­cult for the bulls to pull off. The OBV saw a break­out past a local resis­tance (white) in Sep­tem­ber. The past month saw a flat OBV once more as buy­ing and sell­ing vol­umes were bal­anced. The Bollinger Bands width indi­ca­tor was in decline too. This high­light­ed the fact that there was low­ered volatil­i­ty seen on the dai­ly timeframe.

High­er time­frame traders can look to buy a revis­it to the range lows, and look to short the asset as it approach­es $0.55. Inval­i­da­tion of this idea would be a break­out and retest above $0.55.

The funding rate is back in positive territory as bulls regain confidence

XRP sees lowered volatility on higher timeframes, here is what it means for investors

Source: San­ti­ment

The on-chain met­rics did not paint a par­tic­u­lar­ly bull­ish pic­ture for XRP either. The MVRV (365-day) ratio has picked up some­what from the lows it set in June, however.

Even so, the met­ric revealed that XRP hold­ers of the past year were at a loss over­all. The lows reg­is­tered in mid-June match the lows set in Decem­ber 2018 almost exact­ly. Could this indi­cate that a long-term bot­tom has been formed?

The 30-day active address count has been on a decline too. The pos­i­tive fund­ing rate showed that spec­u­la­tors have been bull­ish­ly posi­tioned in recent days.

The last few days have seen XRP bulls face rejec­tion at the $0.5‑bearish order block. Coin­glass data showed that the past 24 hours saw only 46.7% of the long posi­tions being bull­ish. A bounce from the mid-range towards $0.54 can be used to secure prof­its by the bulls and also to assess tak­ing short positions.



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