Disclaimer: The information presented does not constitute financial, investment, trading or any other advice and is solely the opinion of the author
Market structure and momentum were strongly bearish for XRP. A move above $0.365 may indicate bullish intent.
Ripple’s price charts [XRP] on the lower timeframes looked simple. The price reached an area of significant support and the bulls have defended the level well so far. However, it was a weekend and volatility was low.
Read Ripples [XRP] Price Forecast 2023-24
However, December 19 could shed more light on the momentum for XRP and the broader crypto market for the week ahead. The direction of the S&P 500 has been bearish lately. A continuation of the same could increase the selling pressure behind Bitcoin [BTC] and XRP one more time.
XRP finds support at $0.35 and offers the chance of an upward move
Source: XRP/USDT on TradingView
Market structure was strongly bearish on the two-hour chart. At the time of writing, the asset was trading within an H4 bullish order block. This order block was formed on November 21, and later that week an upward move broke the market structure and changed it in favor of bulls. This highlighted the bounded zone as a bullish order block.
The move that followed saw XRP rise to $0.41, but no further. Last week’s selling pressure saw prices retest at $0.398 as resistance and fall. The $0.37 support level failed to hold, but the $0.35 zone was well defended. Therefore, aggressive buyers may try to buy XRP within this order block, with a stop-loss set below the $0.345 support.
It is possible that December 19 will likely set the momentum for the next week. If the sellers find strength and force prices below the bullish OB, a retest of the same zone offers selling opportunities. However, if XRP can rise to $0.365 and flip its structure in favor of the bulls, a short-term trend reversal would be signaled.
When XRP fell sharply on December 16, it left an inefficiency on the hourly charts. Delineated by the white box, this FVG would be on the bull agenda for the next week. If $0.37 were recovered as support, another buy opportunity would be available.
Open Interest saw a slight increase, but it would take a lot more fuel to ignite bullish flames
Source: Coinalyse
Over the weekend, the price dropped to the support zone and the OI finally stopped falling. It did not establish an uptrend yet and indicated that futures traders were not yet excited about the price action.
Once again, December 19 could bring clarity to futures traders. A slow move back above the $0.365 mark, if accompanied by an increase in OI, would indicate that the bulls had found strength. Meanwhile, flat OI and rising prices could indicate that the $0.35 would act as resistance and see rejection instead.
This post XRP could see a bullish move to fill an overhead inefficiency, here’s why
was published first on https://ambcrypto.com/xrp-can-see-a-bullish-move-to-fill-an-inefficiency-overhead-here-is-why/
