Disclaimer: The information presented does not constitute financial, investment, trading or any other advice and is solely the opinion of the author
XRP was bearish on the daily chart at the time of writing.
The average coin age increased; active addresses and funding rates declined.
Ripple [XRP] rose above half a dollar at the end of March, but lost more than 20% after an intensified selloff. On April 21, sellers broke through the 50-EMA ($0.4661), but encountered resistance at the $0.4500 support level.
The support also aligns with the 50% Fib pullback level and could hold back sellers, especially if Bitcoin [BTC] doesn’t fall under the $27k price range.
Read Ripple [XRP] Price prediction 2023-24
Will the $0.4500 support hold?
Technical indicators on the daily chart tended to favor sellers, but price action showed indecisiveness between buyers and sellers. In particular, the 200-MA (blue line) and 50-EMA (orange line) were flat, meaning long and short trends were consistent with a lack of clear price direction.
In addition, the ADX (Average Directional Index) retreated, indicating a likely consolidation or prolonged downtrend, while RSI was below the neutral level, showing that sellers had the upper hand.
As such, XRP could trade sideways between 50% ($0.4430) and 61.8% ($0.4765) for a while before sliding into the $0.3586 – $0.4500 range.
Note that the 38.2% Fib level also matches the 200-MA and could resist a prolonged decline. A close below the hurdle would attract more aggressive selling.
Alternatively, XRP could close above the 61.8% Fib level of $0.4765 if $0.4500 support is secured. Such a move could see the pair retest the half dollar value at $0.5082 or 78.6% Fib level ($0.5242).
Daily active addresses and funding rates declined
Is your wallet green? Account XRP Profit Calculator
XRP’s active addresses rose to over a million by mid-April. However, the number has since dropped to less than 400,000 at the time of writing, more than 50% fewer active addresses, impacting trading volumes and providing more leverage to sellers.
In addition, funding rates turned negative at the time of writing – a dip in demand for XRP in the derivatives market and bearish sentiment.
But the 90-day average coin age rose, highlighting increased accumulation in recent days – evidence of a likely rally that could provide some hope for bulls. Investors should monitor BTC price action and new developments in the SEC lawsuit before taking any action.
This post XRP’s Plunge Reached $0.4500 Support – Here Are The Key Levels To Consider
was published first on https://ambcrypto.com/xrps-plunge-hit-0-4500-support-here-are-key-levels-to-consider/