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Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- XRP bulls have reason to hope for a rally
- The intense resistance zone overhead could hold back bullish efforts
Over the past two weeks, XRP saw a price increase from the $0.46 level. On September 20, it climbed above $0.513. Traders should keep a closer eye on XRP as this move showed bullish intentions from market participants.
Is your portfolio green? Check out the XRP profit calculator
In other news from Ripple [XRP] CTO David Schwartz faced some questions about the claims that XRP was becoming a centralized entity. In his response, Schwartz said these claims “all seem like arbitrary claims” and that there was no evidence for them.
The bearish order block at $0.54 threatens to become large for XRP
Source: XRP/USDT on TradingView
The move above $0.513 changed the market structure from bearish to bullish on the daily chart. XRP also formed a higher low at $0.4864, marked by the orange dotted line. A decline below this level would shift the structure to a bearish level.
Despite the bullish structure at the time of writing, XRP’s Relative Strength Index (RSI) remained stubbornly below the neutral level of 50. It indicated that the upward momentum had not yet gained control. On the other hand, Chaikin Money Flow (CMF) was well above +0.05, indicating heavy capital inflows into the market.
The $0.513-$0.55 region represented a bearish order block on the 1-day chart from late August. As such, it is expected to strongly oppose the bulls despite the bullish structure that XRP has at the time of writing. So it may take some time for sustained gains to manifest.
The decrease in the number of active addresses shows reduced user interaction
Source: Santiment
On August 31, the average coin age dropped and the age consumption metric took a huge leap upward. They showed that there was a big sales wave happening at the time. Since then, the average coin age has increased and the consumed age has not experienced any significant peaks.
Realistic or not, here is the market cap of XRP in terms of BTC
While it was a sign of XRP accumulation across the network, active addresses have continued to decline since late July. The downward trend had not yet stopped, and investor concerns were that the reduced interaction with the public could have a negative impact on market sentiment.