- XRP lacked a definite trend even as BTC surged higher
Low trading volume and lack of momentum meant a breakout might be unlikely
As a seasoned crypto investor with a decade of experience under my belt, I must admit that the current state of XRP is giving me a sense of déjà vu. It seems like we’ve been here before, stuck in this range without a clear breakout in sight.
At the moment of reporting, XRP was valued around $0.588, which is near the middle value of its ongoing range at $0.585. This price range has been maintained since August 2023, and so far, there’s no evidence suggesting an imminent bullish breakout.
In simpler terms, since XRP hasn’t been very volatile recently, it might be a good idea for traders to exercise caution. Over the last fortnight, Bitcoin has risen by approximately 14.3%, while XRP has only increased by about 3.25%. This could be a concerning trend for swing traders who are looking for one token to perform stronger than the other.
Miniature range formation around the mid-range level
Initially, the long-term price span expanded from approximately $0.461 to $0.71, with its middle point at around $0.585. Over the last two months, it seems that XRP has been developing a smaller range, stretching between $0.52 and $0.625.
Since July, the token’s price trend has been indicative of a horizontal movement, punctuated by spikes of significant volatility, like the one witnessed in early August. The daily Relative Strength Index (RSI) stood at 54 and September readings suggested a weak momentum for the asset, implying it was not gaining strength.
In this tranquil period, the OBV (On-Balance Volume) has gradually ascended, indicating that purchasing activity remained consistent. This pattern suggests optimism about a potential rally following the recent consolidation phase.
Given the current situation, it seems that a decrease in price from the $0.6 to $0.62 resistance area looks more probable than a surge beyond it. This is particularly true considering the relatively low trading volumes observed over the past few weeks.
Mixed signals from XRP on-chain metrics
On September 21st, there was a significant increase in dormant circulation, which often predicts an increase in token activity and suggests a possible price adjustment. However, the price decrease since then has only amounted to a 4.8% drop. Simultaneously, the average coin age has been steadily rising, indicating that XRP is being hoarded.
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In simpler terms, the temporary Market Value to Realized Value (MVRV) ratio has been positive since mid-September and indicates that there might be selling pressure due to profit-taking activities. However, despite this signal, XRP has persistently remained near the $0.58 price point.
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2024-09-28 19:03