- XRP holders are underwater and optimism is low.
- Technical analysis showed that a rebound from October lows was likely.
XRP was in a downtrend. The bears were overwhelmingly strong throughout January. The brief rally to $0.62 on January 11 lasted four days and reversed just as quickly.
An earlier AMBCrypto report highlighted that bearish pressure on XRP was intense and likely to drive prices south of the $0.5 psychological support level. At the time of writing, this scenario seemed likely.
The former support zone of $0.53-$0.55 would now serve as resistance
Source: XRP/USDT on TradingView
The market structure on the 12-hour chart has been bearish since January 19. The rally to $0.62, despite forcing a bullish structure break, filled an imbalance and was forced to reverse. The RSI has been below neutral 50 for most of January, reflecting the assets’ downward momentum.
The OBV has been on a downward trend since mid-December. The past ten days have seen this trend accelerate rapidly. Together, the price action and market structure pointed to more losses.
A jump to $0.53 or $0.549 would retest previous support levels as resistance and provide a place for traders to go short. The October low of $0.473 is the next bearish target.
The rising average coin age was positive news for investors
Source: Santiment
AMBCrypto’s analysis of Santiment data showed that the token was undervalued. The MVRV ratio was -16.25%, the lowest since October 18. This also showed that the holders had suffered losses, indicating reduced investor confidence.
Weighted sentiment has also been negative over the past ten days, but has jumped in recent hours. This happened even as prices fell.
Read XRP’s Price Prediction 2024-25
On the other hand, the average coin age has been trending higher since the first week of January. This indicated a network-wide accumulation.
The dormant circulation metric showed a major sell-off on January 17. After this, XRP fell by just over 11%, from $0.57 to $0.503 at the time of writing.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
