contributor
Posted:
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- XRP remained completely bearish, but multiple indicators pointed to a bullish recovery on the horizon.
- The CMF showed strong capital inflows, while spot CVD continued to rise rapidly.
Ripple [XRP] remained stuck below a critical Fibonacci level despite the best bullish attempts at a reversal. In August, XRP turned bearish after the price reached the higher low on the daily time frame.
Read Ripple’s [XRP] Price Forecast 2023-24
With Bitcoin [BTC] Registering a price increase in the last 24 hours to trade at $26.1k, this could provide a good opportunity for XRP bulls to push for a rally.
This Fibonacci level has limited the bullish rally
Source: XRP/USDT on trading view
XRP’s rapid recovery from the $0.4 price zone after its sharp decline on August 17 was heralded as the bottom of the deep retracement. However, the bullish rally stalled at the Fib level of 23.6% ($0.544).
Bulls have encountered mild resistance at the 23.6% Fib level twice on August 20 and August 30 respectively. Still, September brought moderate gains for XRP. The indicators on the chart suggested that buyers could go a step further to get above the Fib level of 23.6%.
The Chaikin Money Flow (CMF) indicator rose to +0.24, demonstrating strong capital inflows for XRP over the past week. While the Relative Strength Index (RSI) remained below the neutral 50s, it moved above the oversold zone, signaling modest buying pressure.
The press time price of $0.5 presents a buying opportunity. Short-term traders can target the price levels of $0.55 to $0.6. A new price rejection at the 23.6% Fib level would negate this idea, and we could see strong downside pressure towards $0.45.
A rising CVD indicates a strong bullish rebound
Source: Coinalyse
Realistic or not, here is the market cap of XRP in terms of BTC
On-chain data from Coinalyse showed that XRP’s Spot CVD has been rising rapidly since August 17. This revealed strong demand for XRP from market speculators, with the possibility of another bullish wave.
Buyers can also be encouraged by the positive financing rates in September. Together, they pointed to favorable conditions for bulls to initiate a new price rally.
