Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- XRP had a bullish bias but was trading just below a resistance level.
- A move above $0.385 would indicate a good chance for the price to continue to the upside.
Fluctuations [XRP] Prices reached the long-term support level of $0.374 in recent days. Sellers tried to push prices down, but the bulls were able to hold back. At the time of writing, the momentum of the lower timeframe had turned into an uptrend.
How much are 1, 10 and 100 XRP worth today?
However, that doesn’t mean XRP was ready to soar to the highs of its $0.41 range. There was yet another level of significance just above which XRP was trading at press time. If it turned into support, lower time frame traders can look to buy the asset.
The momentum appeared to be on the verge of reversing to the upside
Source: XRP/USDT on TradingView
XRP has traded in a range of $0.415 to $0.33 since November, with the mid-range mark at $0.374. Before retesting the $0.374 level in late February, XRP had reached the same support level in mid-February. In that case, the bulls were unable to prevent a quick drop to the $0.36 level. But then bullish sentiment took over the market. This was when Bitcoin [BTC] it fell to the support level of $21.6 thousand.
At the time of publication, Bitcoin was trading at $23.7k. The next major resistance level is at $25.2k. It was already rejected from this region on February 20th. Therefore, a deeper pullback to $22.5k cannot be discounted.
This meant that even though XRP was showing some bullish behavior, the XRP market could be risky. The RSI moved above the neutral 50 and held a reading of 54, which indicated neutral to weak bullish momentum. On the other hand, OBV has been in decline for the past two weeks.
Therefore, despite the lower upside momentum of the time frame, there was a lack of real demand from buyers. This suggests that a rally could be short-lived. To the north, $0.385 and $0.405 are resistance levels to watch out for.
Realistic or not, here is XRP’s buy cap in BTC terms
Open interest declined despite the rise in prices
Source: Coinalyze
The one-hour chart on Coinalyze showed that the funding rate remained positive. But that was in contrast to the drop in open interest over the past few hours, even as XRP rallied. This suggests a lack of confidence in the futures market.
All together, the indices showed a lack of buying pressure despite the lower bullish time frame. On the four-hour chart, the bias was bullish following the strong bullish breakout of the market structure that occurred on February 15, when prices surged above $0.385. This H4 bias would be bearish if XRP falls below $0.36.