Ripple [XRP]: Bulls defend $0.412; can they bypass the $0.45 hurdle

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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 bulls defend­ed the 50 EMA. 
  • The four-hour chart was bull­ish, but trends on CEXs could com­pli­cate bulls’ efforts.

On March 21, Rip­ple [XRP] appre­ci­at­ed 30% amidst renewed opti­mism that Rip­ple Labs could win against the SEC law­suit. It jumped from $0.3733 to $0.493 but retraced after Bit­coin [BTC] tem­porar­i­ly lost hold of the $28k zone. 

Read Ripple’s [XRP] Price Pre­dic­tion 2023–24

At press time, BTC’s val­ue was $27.50k, and it could block XRP from clear­ing the key obsta­cle at $0.4491. As such, XRP’s price action in the next week will be large­ly deter­mined by new devel­op­ments on the SEC law­suit and BTC’s price movements. 

Bulls defended the 20 EMA – can they sustain the recovery?

Source: XRP/USDT on TradingView

The $0.4118 sup­port lev­el checked XRP’s retrace­ment. But the recov­ery was blocked at $0.4491, set­ting it to a cor­rec­tion. How­ev­er, bulls have defend­ed the 20 EMA (expo­nen­tial mov­ing aver­age) of $0.4134, prompt­ing anoth­er short-term ral­ly. There­fore, bulls must clear the $0.4491 obsta­cle to con­tin­ue with the recovery. 

A close above $0.4491 could tip bulls to push XRP to the bear­ish order block of $0.4746. A retest of the $0.5 lev­el could be like­ly if bulls could clear the bear­ish order block. 

Alter­na­tive­ly, near-term bears could gain mar­ket entry if XPR clos­es below $0.4491. They will like­ly sink XRP to retest the 20 EMA or the $0.4118 sup­port. Any drop below $0.4118 could attract increased sell­ing pres­sure, push­ing XRP to 200 EMA or $0.3982. 

The Rel­a­tive Strength Index (RSI) bounced sharply from the 50-mark, show­ing increased buy­ing pres­sure. Sim­i­lar­ly, the Accumulation/Distribution indi­ca­tor exhib­it­ed an uptick, show­ing the asset was under­go­ing a short-term accu­mu­la­tion phase. Col­lec­tive­ly, these trends show’ bulls’ lever­age in the mar­ket at press time. 

Exchange Flow Balance was positive

Source: San­ti­ment

Accord­ing to San­ti­ment, XRP’s exchange flow bal­ance was pos­i­tive (84k). This was evi­dence that more XRPs moved in than out of CEXs. It indi­cat­ed a short-term sell pres­sure as more XRP could be avail­able for offload­ing on CEXs. 

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A drop in sup­ply out­side of exchanges fur­ther con­firms lim­it­ed accu­mu­la­tion at press time that could tip short-sell­ers to offload their hold­ings. As such, bulls could wait for a close above $0.4491 before mak­ing moves. 

Nev­er­the­less, con­sid­er­able whale move­ments have trans­act­ed over $1 mil­lion in the past few hours, which could give bulls some hope. How­ev­er, investors should also track BTC’s price action before mak­ing moves. 

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