Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- The extended withdrawal threatened to wipe out all of July’s gains.
- Quarterly and monthly XRP holders posted mixed performance.
Ripples [XRP] the news has changed rapidly in recent days. The mid-July euphoria following Ripple Labs’ partial legal victory dissipated after that. Notably, the company called the lawsuit “propaganda” in an official report on the partial legal victory.
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But XRP’s price continued to bled, threatening to undo July’s post-win gains.
From Bitcoin [BTC] price action was also unimpressive. While the king coin struggled to hold the $29.0k mark, weak BTC could delay a solid corrective rebound for XRP.
Sellers Overwhelmed 50% Fib Level
Source: XRP/USDT on TradingView
The price chart indicators underlined a strong tendency to bearish. For example, the Relative Strength Index steadily retreated from the overbought zone in mid-July and, at the time of writing, was just inches away from sliding into oversold territory.
Similarly, Chaikin cash flow has remained below the threshold since the end of July, indicating reduced capital inflows to XRP markets. The above bearish pressure caused XRP to crack a crucial 50% Fibonacci retracement level of $0.6751.
Above the 50% Fib level is a bearish order block (OB) from $0.68 – $0.71 (red), which could be used to track a shift in the market structure. Thus, a price rejection at the level could be used to short the asset, with targets at 38.2% Fib level ($0.613) or the previous $0.5850 breaker.
A candlestick session close to H12 bearish OB will shift the market structure to bullish. In the north, key resistance levels were at $0.74 and $0.83.
Quarter holders outperformed month holders
Source: Sentiment
The MVRV (Market Value Realized Value), which tracks profit and loss for tokens that have not moved within a specified time period, indicated that monthly holders suffered more losses than quarterly holders as of this writing.
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Quarterholders had a 2.5% gain as evidenced by the 90-day MVRV. But the gain was far less than the over 55% gain they had during the peak of the XRP surge after the partial legal victory in mid-July.
Monthly holders, however, had a 10% loss, as illustrated by the 30-day MVRV. Despite the poor performance, significant accumulation occurred during the pullback, as evidenced by the rising average coin age.