XRP has seen growth in positive sentiment since the start of 2023. However, traders are not willing to make big bets.
There may be a shift in investor belief towards Ripple (XRP), as evidenced by data from Sanitation indicates that the altcoin has experienced a significant increase in positive sentiment since the beginning of the year. This follows a prolonged period of low investor confidence in the market following the unexpected fallout from FTX.
Read Ripples [XRP] Price forecast 2023-2024
At the time of writing, the weighted sentiment of XRP was 2.22 per data from the on-chain data provider.
Source: Sentiment
Much ado about nothing?
Despite the increase in positive sentiment surrounding Ripple (XRP), the price has failed to show significant growth and has instead remained within a narrow range. According to CoinMarketCapSince the beginning of the year, the price of XRP has fluctuated between $0.34 and $0.35.
On a daily chart, the moving average convergence/divergence (MACD) suggested that a bull cycle was underway, while the continued shortness of the histogram bars that make up the MACD confirmed that the market was range-bound.
When the price of an asset is range-bound, it means that it fluctuates within a certain price range and does not make clear directional movements. This can happen when there is a lack of clear catalysts or uncertainty in the market, and traders are unwilling to make big bets in either direction.
How many XRPs can you get for $1?
The position of XRP’s Relative Strength Index (RSI) and the Money Flow Index (MFI) gave credence to the state of uncertainty that has permeated the market since the start of the year. Key indicators have been flat since December 29, when weighted sentiment turned positive.
If an asset’s RSI is flat, it could be a sign that the price is not experiencing significant strength or weakness and is instead consolidating. Similarly, if the MFI is flat, it may be a sign that the asset’s buying and selling pressures are balanced and there is no clear trend in volume.
Despite trading in a tight range, XRP’s Chaikin Money Flow (CMF) has been on an upward trend over the past week. A rising CMF typically indicates a greater number of buy trades than sell trades, often leading to upward price movements.
Therefore, when the price of an asset remains in a tight range while the CMF rises, it may indicate that there is increasing buying pressure that could lead to a breakout.
Source: TradingView
This post Ripple: Everything there is to know about recent XRP price movements
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