Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- The 1-day and 4-hour price charts remained bullish as the $0.7 area continued to serve as a demand zone.
- There is the possibility of a deep retracement towards $0.6, especially if Bitcoin faces a decline below $29.7k.
The ruling last week that Ripple [XRP] did not violate federal securities laws, saw the token pump wildly and gain 70% in value in a day. Investors should be excited that XRP is “no security” as it inspires confidence and brings regulatory clarity to the crypto landscape.
Read XRP’s 2023-24 Price Forecast
XRP’s price action on the 1-day chart showed it has multiple levels of support in the south that must be broken before the outlook flips to the bearish side. The first of these is the $0.7 level, which has been in demand for the past few days.
The 50% retracement level has been defended as support so far
Source: XRP/USDT on TradingView
After last week’s strong rally, the XRP bulls have not relinquished their hold on the market. The OBV showed that while there has been some selling pressure, buyers have remained the stronger of the two and prices are likely to rise.
It could take some time, as a sudden rally of this magnitude could face massive selling pressure from profit takers. In that case, the Fibonacci retracement levels should be places where the bulls hold. Therefore, positional traders can maintain a bullish outlook up to the $0.566 level, which represented the 78.6% retracement level based on the recent increase.
For shorter time frame traders, the $0.7 level is critical, and they can buy XRP on a drop to the $0.67-$0.7 region. Their target would be the 23.6% extension level at $1.05, a level where XRP has not traded since March 2022.
The high MVRV showed that XRP could fall under selling pressure
Source: Sanitation
Santiment’s 6-month chart showed that the 90-day MVRV ratio climbed well past the 2023 highs. This was a sign that the asset was overvalued.
How much is 1, 10 or 100 XRP worth today?
A retracement can be useful for investors to build a position. Development activity took a dip in July, but that shouldn’t bother buyers in the long run.
Surprisingly, the average coin age of 90 days has been on a downward trend since June. This showed that the token was not in a phase of accumulation. It reinforced the idea that sellers could recover quickly. Based on the price action, the $0.56 and $0.645 levels need to be crossed before bulls are seriously concerned.