As XRP bulls regain strength, a push to $0.6 could become reality if…
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
-The lower timeframes such as the 1-hour showed the structure could flip bullish soon.
-If this occurred, XRP bulls can seek buying opportunities upon a retest.
On 16 March, Ripple [XRP] initiated a rally from $0.356 to reach $0.585 on 29 March, recording gains of 64%. The retracement since then was halted at the $0.48-$0.5 support area. Analysis of lower timeframe XRP price charts showed that another move toward the $0.6 resistance was brewing.
Read Ripple’s [XRP] Price Prediction 2023-24
The formation of higher lows after the defense of the $0.5 support, coupled with a lower timeframe bullish outlook, meant that a breakout above $0.53 was likely for XRP. A retest of this level could present a buying opportunity.
The breakout past the short-term range looked increasingly likely
Source: XRP/USDT on TradingView
The 20 and 50-period moving averages showed bullish momentum, as did the RSI with a reading of 59. The OBV rose massively over the past week when XRP bounced from the $0.5 support level. The price action was also bullish for two main reasons.
The first was the defense of the mid-range mark at $0.505. The range (white) extended from $0.48 to $0.529, and XRP has traded within this range since 2 April, marking these levels as important in the short term.
Over the past ten days, XRP bulls valiantly defended the $0.5 mark, as it was a psychological round number as the short-term mid-range support, and most importantly, a higher timeframe level of significance as well. The rising BB width indicator showed an expansion phase could follow, reinforcing the idea of a bullish breakout.
The second reason was the formation of higher lows after the bounce from $0.5, and the possible formation of a one-hour bullish order block at the area highlighted in cyan. If XRP can close an hourly session above $0.53, a retest of the $0.515-$0.525 area would be a buying opportunity. Bulls can anticipate a range breakout and target the $0.58-$0.6 area, the next higher timeframe resistance. The stop-loss can be set below the H1 bullish order block at the $0.51 level.
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Sentiment remained strongly bullish behind XRP
Source: Coinalyze
8 April was the most recent time when the Open Interest rose when the price was in a lower timeframe downward move, according to Coinalyze data. This denoted extremely bearish sentiment, but it lasted only a few hours. At the time of writing, both the prices and the OI were on an uptrend, pointing toward bullish speculators. The funding rate was also positive to show long positions were in the majority.
Over the past 24 hours, the sharp drop from $0.534 to $0.515 saw close to $1.3 million worth of long positions liquidated within a few hours, but the liquidation data has been flat since then.
