Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
XRP can trade within the $0.3687 – $0.3783 range or break above.
Demand in the derivatives market remained positive.
Ripple [XRP] rally over the past two weeks up to the time of going to press. However, two hurdles prevented it from reaching the $0.4000 mark.
At the time of writing, XRP was trading at $0.3761 and appeared to be stuck between $0.3687 and $0.3783 after a recent massive rally.
While bears were on the scene as evidenced by long tail fuses, bulls prevailed and were able to retest and push above the upper limit of the $0.3783 range.
Read Ripples [XRP] Price prediction 2023-24
Ripple in the $0.3687 – $0.3783 Range: Is a Retest or Upside Breakout Probable?
The Relative Strength Index (RSI) was in the overbought zone on the 12-hour chart, showing strong buying pressure. Therefore, XRP bulls could try to retest or break above the upper limit of the $0.3687 – $0.3783 range in the coming hours/days.
A candlestick close to the current trading range will give bulls momentum to target $0.4000. However, bulls must overcome the obstacle between $0.3915 and $0.3953 to move closer to last year’s high in December.
Alternatively, bears could gain leverage and push Ripple below the current trading range, invalidating the above bias. However, such a downtrend could cool off at the 100-period EMA of $0.3665 or the $0.3545 – $0.3608 range.
Moreover, the overbought condition, as evidenced by the RSI, makes XRP ripe for a price reversal. So investors should follow Bitcoins [BTC] price action to measure the movement of XRP before making decisions.
Is your wallet green? look at the XRP profit calculator
Demand for XRP in the derivatives market remained positive, but…
Demand for XRP in the derivatives market has remained relatively positive since January 4, as evidenced by the positive Binance Funding Rate for the XRP/USDT pair. At the time of writing, the Binance Funding Rate was still positive, creating significant demand for XRP in the derivatives market.
However, weighted sentiment was slightly below the neutral line and trading volumes had gradually declined at the time of writing. This shows that analysts were somewhat bearish on XRP, and the falling volumes could undermine the upside momentum needed to break out above the current trading range.
Investors should monitor BTC performance to capture XRP price movements with greater accuracy. At the time of writing, BTC was facing a $19,000 price rejection. Therefore, if BTC breaks convincingly above the USD 19,000 level, it could cause XRP bulls to break out of the current range and target the USD 0.3915 – USD 0.3953 resistance range.
This post Going long on Ripple [XRP]? You should read this before making a move
was published first on https://ambcrypto.com/going-long-on-ripple-xrp-you-should-read-this-before-making-a-move/