Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- The short-term structure could favor the bulls, but there was significant resistance overhead.
- The accumulation phase since April underlined the possibility of another rally.
Ripple [XRP] has registered some gains on the charts in the past two weeks. During this time, Bitcoin [BTC] slipped lower, from $27.4k to $26.4k. BTC was expected to drop further in search of a strong zone of support, which could upset the short-term bullish momentum behind XRP.
Realistic or not, here’s XRP’s market cap in BTC’s terms
If the lower timeframe momentum did not see an interruption, there was a good chance that XRP could register further gains over the next week or two. Analysis of the higher timeframes showed that the $0.48 region was a stern resistance zone. Can the bulls breach it?
The short-term bias was about to flip bullish once more
Source: XRP/USDT on TradingView
The price action of XRP on the four-hour chart showed that the past two weeks have been bullish. The price could rise past the $0.438 and $0.45 levels. It has also retested $0.45 as support within the past 24 hours and experienced a move higher.
At the time of writing, XRP traded at $0.4668. This represented a 3.7% bounce from the $0.45 support level. Trading volume was also good, with one session having an above-average volume that also left an imbalance.
This fair value gap, marked in white, was likely to be tested or even filled in the coming days. If it happened after a move above the $0.4674, marked in orange, it would likely present a buying opportunity. This was because a move above the said level (marked in orange) would shift the market structure to bullish. It was bearish after the session close below $0.4503 on 25 May, but the prices quickly reversed.
The RSI jumped back above neutral 50, showing bullish momentum. The OBV has also been on the rise since 11 May, although it saw a sizeable pullback on 24 May. Along with the price action, the inference was that further short-term gains were possible for XRP. The next levels of resistance lie at $0.481, $0.493, and $0.51.
How much are 1,10,100 XRPs worth today?
Two months of rising mean coin age suggested bulls have been active
Source: Santiment
The 30-day MVRV ratio climbed into positive territory, but only just. This showed short-term holders saw marginal paper gains once more. More importantly, the mean coin age was also on an uptrend.
This has been the case since mid-April, even though the price trended lower in the past month. The accumulation phase of the past two months might see XRP bulls drive prices higher in June.
