Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
XRP weakened as BTC struggled to hold its value at $21K.
Uptrend momentum may be limited as active addresses and sentiment decline.
The Ripple [XRP] market weakens after Bitcoin [BTC] dropped below $21k. At the time of writing, the value of BTC was $20,973, while the price of XRP was $0.3882.
Read of ripple [XRP] Price prediction 2023-24
XRP bears could push XRP lower if BTC did not go past $21,000, presenting short-selling opportunities at these levels.
What support will hold?
On the four-hour chart, the Relative Strength Index (RSI) pulled back from the lower range but was forced to move towards the neutral line. At the time of writing, the RSI reading was 51, showing that the market was close to neutral after buying pressure eased as the bears gained influence.
On-Balance Volume (OBV) also declined slightly, suggesting limited near-term upside momentum. As such, XRP could drop lower and settle at $0.3780 if it breaks the $0.3867 and $0.3829 support. These levels could serve as short selling targets for short traders.
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However, a break above $0.3938 would invalidate the bearish forecast. Such an uptick would lead XRP to target the bearish order block at $0.4053, especially if BTC reclaimed its $21k zone.
XRP’s active addresses and OI have been rejected
According to Coinglass, XRP’s Open Interest (OI) declined. The price drop that showed downward trend momentum was too strong as more money flowed out of the XRP futures market. Therefore, XRP may be bearish for the next few hours before recovering.
Additionally, Santiment’s data showed that active addresses have dropped over the past 24 hours, indicating fewer accounts were trading XRP. This resulted in limited upward momentum. In other words; it gave bears more clout in the current market structure.
XRP development activity also fell sharply, while investor confidence declined, as evidenced by negatively weighted sentiment. Therefore, these stats suggested a bearish outlook for the asset in the coming days.
However, investors should pay attention to BTC movements and RSI patterns. Mid-range RSI rejection would indicate slowing downtrend momentum and is worth following to minimize bear risks. Similarly, if BTC were to move beyond $21k, XRP bulls could be tipped to overcome the $0.3938 hurdle.
This post Ripple [XRP] market is weakening, but short traders can profit at these levels
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