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- XRP had a bullish structure on the H4 and lower timeframes.
- The increased demand in recent days has been an encouraging factor for the bulls.
Ripple [XRP] saw weakness among buyers over the past two weeks as prices began a downward trend. The bulls were rejected by the resistance region at $0.54.
Read Ripple’s [XRP] Price forecast 2023-24
In other news, Ripple has replaced Circle [USDC] as the fifth member of the Hong Kong Virtual Asset Consortium [HKVAC]. Yet the report also showed that USDC had much higher network growth than XRP.
An October 12 technical analysis report from AMBCrypto drew attention to XRP’s bearish bias on the 1-day chart. It also highlighted the $0.46 as a crucial support level. What do the lower time frame charts look like?
XRP’s rejection at $0.5 on Monday could be a harbinger of further losses
Source: XRP/USDT on TradingView
The move above the recent lower high at $0.489 (orange) caused XRP to reverse its market structure bullishly. The RSI also climbed above the neutral 50. The DMI saw both the ADX (yellow) and the +DI (green) jump above 20.
Thus, the factors reflected strong bullish sentiment just 30 hours before the time of writing. Yet things have started to change. The OBV was in a downtrend for the entire month of October and this lack of buying pressure caused prices to drop to $0.489.
The RSI, which peaked at 65 on Monday, stood at 47 and indicated that bearish momentum was starting to take control.
The next higher low that XRP bulls need to defend in the near term was $0.4835. A move below that would shift the market structure bearish again and could see XRP fall to $0.46 or lower.
Is the CVD position at odds with the OBV?
Source: Coinalyse
Spot CVD has moved higher since October 9, when prices bounced just above the $0.47 mark. Still, the OBV is in a steady downtrend, but the volume indicators are not in disagreement.
The OBV also recorded a small rebound since October 9, but the trend has been downward in recent weeks. The uptrend in spot CVD has been an encouraging factor for bulls in the short term.
How much is 1, 10 or 100 XRP worth today?
In addition to prices, Open Interest has also moved higher over the past two days. This indicated bullish sentiment in the market. Therefore, as things stood, it was likely that XRP could rise towards $0.5 again.
Whether the bulls can break through this target was unclear, but a sustained uptrend on the CVD would strengthen the bullish case.