Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- XRP signaled strong bearish sentiment in the short term.
- The $0.5 level could be crucial in determining XRP’s trend for the coming week.
Ripple [XRP] saw a huge jump in the number of active addresses on October 8. Despite positive news over the weekend, the price is on a bearish trajectory. It fell back to a key level at $0.505.
Read Ripple’s [XRP] Price forecast 2023-24
A report from AMBCrypto on October 6 noted that a decline towards $0.5 was possible due to the presence of higher time resistance at $0.55. This has been the case so far, but can the bulls stem the losses?
The Fibonacci level and the local low of $0.5 are extremely important
Source: XRP/USDT on TradingView
The $0.5 is not only a psychological round number, but it is also close to the 78.6% Fibonacci retracement level. These Fib levels were plotted based on the late September rally to $0.55 and remained significant in the short term.
However, neither the OBV nor the RSI encouraged the bulls. The RSI quickly fell below the neutral 50 and stood at 33 at the time of writing, indicating that downward momentum was strong. The OBV also fell in October.
The lack of buying volume meant that the $0.5 level may not keep the bears at bay. In that case, the $0.49 level could serve as support, but the bias would have shifted decisively in favor of the sellers.
Sentiment has turned bearish in recent hours as XRP suffers more losses
Source: Coinalyse
Realistic or not, here is the market cap of XRP in terms of BTC
XRP was trading at $0.51 at the time of writing, but was rapidly declining. The past few hours have shown a drop in Open Interest. Together they identified discouraged desires. The spot CVD was also in a downtrend.
The lack of demand in both the spot market and the OBV trend showed that XRP bulls were weak. A four-hour trading session below $0.5 would indicate that XRP is likely heading towards $0.49 and below.