Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- XRP has seen high price volatility in recent days
- Despite the fluctuations, the price action showed that the bulls likely have superiority
Ripple [XRP] Volatility has increased over the past week. The bulls and bears fought a battle around the $0.54 level. At the time of writing, the bears have been able to defend this resistance.
Read Ripple’s [XRP] Price forecast 2023-24
A previous XRP price action analysis by AMBCrypto showed that a retracement to $0.49-$0.5 was possible. This remained true, although XRP fell to $0.506 on the day of the recent report’s release. Could bulls look to enter longs if we get a retest?
The bearish higher time frame order block held firm
Source: XRP/USDT on TradingView
Recent volatility saw XRP’s H4 market structure turn bullish again after the sudden spike to the $0.547 resistance on October 3. Since then, the price has fallen lower, trading at $0.523 at the time of writing.
A series of Fibonacci retracement levels (light yellow) were plotted based on the rally from $0.4912 to $0.549. This happened last week, but Fib levels showed that the $0.503-$0.513 region offered an ideal short-term buying opportunity. The bullish target would be the $0.563 level, which was the 23.6% extension level.
There was a bearish order block at $0.55 on the daily chart that emerged on August 29. This line has not yet been breached, but XRP bulls have managed to hit higher lows since mid-September. This price action indicated bullish intentions. The Chaikin Money Flow (CMF) value of +0.12 also indicated notable capital inflows into the Ripple market.
The Relative Strength Index (RSI) was at 50.5 and the momentum shown was almost exactly neutral. Meanwhile, the Directional Movement Index (DMI) showed that the bullish trend of the past two days had weakened significantly. This was revealed by the +DIs (green) falling below 20.
The short-term selling pressure on XRP could cause small losses
Source: Coinalyse
Over the past 24 hours, both the price and Open Interest (OI) moved lower, underscoring the short-term bearish sentiment. More worryingly, the spot Cumulative Volume Delta (CVD) has also taken a nosedive, indicating a lack of demand for XRP in the spot markets.
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This showed that the token could be forced to drop back towards $0.5, but it remained unclear whether the bears were strong enough to push prices below $0.49. Until then, bulls could look for buying opportunities near the $0.5 support.