Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- XRP has a strong bullish outlook on the higher time frame price charts.
- A short-term pullback to $0.55 could be in the works.
Ripple [XRP] was the fifth largest cryptocurrency at the time of writing with a market cap of $32.8 billion. AMBCrypto previously reported that whale accumulation was going strong and new wallet addresses were being created.
Read Ripple’s [XRP] Price forecast 2023-24
This positive sentiment led to XRP climbing above a resistance level that has been active since August. An analysis of XRP’s price action on October 30 showed that a bullish breakout was imminent. This analysis has now been confirmed.
The Fibonacci levels showed that a retracement could begin in the near term
Source: XRP/USDT on TradingView
The $0.55 level was the highest level of the two-month range (green). The move above this level on October 24 turned the one-day market structure bullish. This past week saw
If this were the start of a pullback, a move towards the USD 0.567 and USD 0.552 levels could occur. A retest of these retracement levels would provide a buying opportunity as the daily market structure remained bullish.
The RSI was well above the neutral 50, highlighting strong upward momentum. On-Balance Volume (OBV) also trended higher since mid-October. The buying volume identified by OBV was higher, supporting the idea that XRP could post more gains.
The positives and negatives for long-term XRP bulls from on-chain metrics
Source: Santiment
One of the positive points was the development activity. While it had its ups and downs, it continued regardless of the price action, and it reflected that the team was hard at work on maintenance and upgrades. However, weighted sentiment has turned negative again.
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Social media engagement tilted in the bears’ favor, and the age-consumed metric saw a huge spike on Oct. 31. This indicated that a large number of tokens were being moved between addresses, and was likely a signal of a major sell-off.
Combined with the decline in the average coin age in recent days, there was a good chance that XRP would fall towards $0.55.