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- XRP Bulls Registered an Impressive Jump from the 61.8% Retracement Level
- Another retest of the $0.6 zone could see a weaker reaction from buyers
XRP saw steady gains in October and November, but the second half of November and December did not see such a strong rally. Instead, the past four weeks saw prices retreat to a key retracement level before bouncing higher.
In addition to the higher timeframe support zone of $0.57-$0.6, the $0.528 and $0.549 levels were also key support levels for long-term investors to keep an eye on.
The $0.6 region has been critical over the past month
Source: XRP/USDT on TradingView
XRP’s rally from $0.4729 to $0.7324 was used to chart a series of Fibonacci retracement levels (light yellow). The 61.8% retracement level was at $0.572 and was tested as support on November 21. It was followed by a jump to $0.7 on December 9, but Bitcoin’s losses also saw XRP fall.
However, this is not to say that selling pressure has flooded the XRP market. On-Balance Volume (OBV) hit a higher high as prices hit a lower high last month, a sign that buying power is increasing.
The RSI stood at 48, suggesting a shift in momentum in favor of the bears. On the other hand, XRP’s market structure has been bullish. It would turn bearish at a daily session near USD 0.572.
Decrease in MVRV ratio is a positive sign
Source: Santiment
Development activity has fallen sharply in recent days, but given the holiday season, this is not a cause for concern. Network growth has increased since October, but conversely, 30-day active addresses have trended south since July. There was a small increase at the end of October and the beginning of November.
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The MVRV ratio climbed near late July highs during the rally past $0.7 in October. Since then, the benchmark has retreated closer to zero, but the price of XRP was once again near $0.7. This suggested that profit-taking activity might not be as intense as the last time XRP rose above $0.7.