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- XRP had shown short-term bullish intentions last week, but has since regained all of its gains from late September
- If the bulls cannot gather their strength and defend $0.46, a much deeper decline could occur
Ripple [XRP] faced overwhelming bearish pressure in the $0.55 region. It showed signs of wanting to climb over the area that had served as a resistance zone since late August. However, Bitcoin [BTC] The inability to consolidate recent gains meant that XRP was also dragged south.
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A previous price report from AMBCrypto highlighted XRP’s near-term bullishness. These bullish expectations have now been debunked. What happened and where on the map can the bulls find solace?
An XRP pullback to the $0.46 level is in the offing
Source: XRP/USDT on TradingView
On the one-day chart, there was a bearish shift in the structure. This came after the rejection of the one-day bearish order block at $0.55. The recent higher low was formed at $0.4912, with $0.505 again providing key short-term support. The price action over the past few hours caused XRP to fall below $0.49.
The Relative Strength Index (RSI) briefly rose above the neutral 50 mark in early October, but fell below it again the weekend before. On-Balance Volume (OBV) also showed a hopeful picture last week, having beaten local resistance (orange dotted). This indicated that buyers were gaining momentum, but the OBV experienced a rapid recession and debunked this idea.
To the south, the $0.46 support level would likely be tested again. It has served as support since mid-June. But if the OBV were to decline further, this support level could also be broken. This could cause XRP to retreat to $0.41, a support level tested earlier in March.
Does the decline in active users not bode well for XRP bulls?
Source: Santiment
The consumed age measure saw a sharp increase on September 30. The conclusion was that a large number of tokens were moved. It was probably a precursor to the big selling wave that started on October 4.
Realistic or not, here is the market cap of XRP in terms of BTC
The average coin age also took a hit on September 30, but has recovered in the past two weeks. Conversely, the number of active addresses has been declining since the end of August. The Market Value versus Realized Value (MVRV) ratio was also negative. The Mean Coin Age showed that accumulation was underway, but the other metrics suggested that investors weren’t exactly confident in XRP.