Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- XRP’s price action has struggled to move above $0.53 since August 22.
- Open interest rates stagnated because buyers and sellers had no leverage.
A narrow price consolidation for Ripple [XRP] on weekends could be on the card. The spot market, especially the 4-hour chart, tended to be sellers, but the futures market was bearish in the short term.
Read Ripple [XRP] Price Prediction 2023-24
In the meantime, Bitcoin [BTC] struggled to stop sellers from crossing the $26.0 mark. If sellers crack and go lower, bears could overwhelm the overall market over the weekend (Aug 26/27).
A slump, consolidation or pump for XRP?
Source: XRP/USDT on TradingView
A Fibonacci retracement tool (yellow) was placed between the August high ($0.708) and the low ($0.423). Based on the tool, the Fib level of 23.6% corresponded to a weekly bullish order block (OB) of $0.458 – $0.494 (cyan).
The mid-August price decline eased as the weekly OB and the 23.6% Fib level converged. So the area is a solid bullish zone.
At the time of writing, XRP’s price action fell after the price rejected at $0.53 (38.2% Fib level). In particular, the 50-EMA (Exponential Moving Average) flipped to resistance, and a retest at this level could push XRP lower towards the confluence area.
Therefore, the $0.458 – $0.494 confluence area would be an ideal buying level for short-term bulls if BTC does not take more losses this weekend. In such a scenario, the immediate target would be the 50-EMA and the 38.2% Fib level.
The RSI was rejected around the 50 median, while the CMF hovered around zero. The data pointed to weak buying pressure and moderate capital inflows.
Open interest stagnated
Source: Coinalyse
XRP saw a positive price reaction after reaching the said confluence area on August 18. Bulls gained control of the market after the retest, as exemplified by the rising CVD (Cumulative Volume Delta).
How many Worth 1,10,100 XRPs today?
But at the time of writing, the CVD was stagnant, indicating that neither sellers nor buyers had absolute control over the market.
In addition, open interest rates (OI) remained unchanged during the recent upswing. The OI has hovered above $330 million since August 18, illustrating stagnant demand for XRP over the same period. It reinforces a likely consolidation ($0.49 – $0.53) over the weekend.