- XRP saw the selling pressure fade away in the past few days
Another price move downward was still likely
As a seasoned crypto investor with several years of experience in the market, I’ve learned to be cautious and patient when it comes to investing in digital assets like XRP. While it’s true that we saw some positive price action and selling pressure fade away in the past few days, I remain skeptical about the sustainability of these gains.
Over the last week, XRP by Ripple witnessed some advancements, though it hasn’t solidified an upward trend yet. Trading activity noticeably increased on May 6th, which was the day of the court hearing.
The technical indicators and the price action did not favor a bullish bias.
According to reports from AMBCrypto and another unspecified source, the Weighted Sentiment and the associated indicator suggesting potential price drops have been on a downward trend. This could imply an upcoming decrease in price due to the deteriorating sentiment.
The mid-range resistance rebuffed the buyers yet again
As a crypto investor, I’ve noticed that the price of XRP fluctuated between $0.46 and $0.71 over the past nine months (represented by the purple range on the chart). Specifically, the middle point of this range at $0.585 has served as a significant resistance level since mid-March.
The resistance zone (red box) was also a bearish breaker block, implying a stronger resistance.
The Chaikin Money Flow registered a reading of zero, signifying insignificant inflow of capital in the market. Meanwhile, the Directional Movement Index displayed that the positive directional indicator (+DI) surpassed the 26-threshold, while the Average Directional Index (ADX) was close to 20.
As an analyst, I observed a nearly established upward trend for XRP. However, surpassing the $0.585 resistance level remained uncertain and needed further confirmation.
Therefore, a 5% move higher to $0.585 could be followed by a 15% slump to the $$0.48 support zone.
Has XRP reached a point of stability?
As an analyst, I’ve observed that the open interest for XRP has been gradually increasing over the past week. Yet, this upward trend hasn’t translated into a substantial price surge.
As a crypto investor, I’ve noticed that XRP experienced significant price growth of more than 10% during a specific timeframe. However, with the strong resistance levels above current prices, my fellow speculators and I have felt apprehensive about making new long positions on XRP.
As a crypto investor, I’ve noticed an intriguing development amidst the prevailing bearish sentiment in the Open Interest (OI) chart. Although the trend may seem grim at first glance, I find comfort in the recent stability of the spot CVD. Over the last three days, this metric has formed a solid base, signaling that the relentless downtrend has come to a halt.
In simple terms, taking this action would mark the beginning of the healing process. It signifies that there was equal demand and supply in the market for buying and selling at the current price point.
Read Ripple’s [XRP] Price Prediction 2024-25
When the number of cases of Cardiovascular Disease (CVD) starts to increase, this could indicate the build-up of more cases and strengthen the possibility of an upward trend.
As things stand, XRP’s chances of a slump toward $0.48 were good given the age-consumed metric.
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2024-05-08 00:07