Disclaimer: The information presented does not constitute financial, investment, trading, or other kind of advice and is solely the opinion of the author.
- XRP is in a bearish market structure and could drop to the 23.6% Fib level ($0.3839).
- XRP Has Decreased Trading Volume And Active Addresses Over The Last 24 Hours
ripple [XRP] It is trading at $0.3918 and was expected to see a further price correction in the near future. Interestingly, the 2-hour timeframe marked a bullish moving average convergence-divergence (MACD) crossover, indicating a buying opportunity.
However, the 4-hour chart shows the potential for a bullish crossover that may not occur given the bearish structure. Bear gains more control, Bitcoin [BTC] Below $17,000, XRP could hit the 23.6% Fib level ($0.3839).
read XRP price prediction 2023-2024
Possible breach of support at the 38.2% Fib level ($0.3907): can the bears maintain momentum?
Source: Trading View
XRP is likely to surpass current support levels at the 38.2% Fibonacci retracement level ($0.3907). Moreover, XRP could fall further to retest support at the 23.6% Fib level ($0.3839).
Two key technical analysis indicators point to the bearish outlook above. Notably, the Relative Strength Index (RSI) indicator has crept sideways below the 50 neutral mark. This indicates that buying pressure has eased and selling pressure has steadily increased.
Additionally, on-balance volume (OBV) showed a downtick indicating a decrease in trading volume. Therefore, it could weaken the buying pressure enough to boost the bulls. In other words, sellers gain more leverage from lower trading volumes, which can push the price of XRP down.
However, if the candlestick closes above the Fib 50% level ($0.3962), this bearish trend could be reversed. In such a case, XRP could target a new resistance level at the 61.8% Fib level ($0.4017).
XRP Recorded Declines In Active Addresses, Volume And Sentiment
Source: Santimento
according to santimento, XRP has recorded a decrease in active addresses (red) over the last 24 hours. Correspondingly, a decrease in active addresses engaging in transactions led to a decrease in transaction volume (white). Therefore, this indicates a reduction in buying pressure.
Additionally, weighted sentiment for XRP was in negative territory. Most analysts have a bearish outlook on crypto assets, indicating that prices may drop.
However, bullish sentiment on BTC could lead to an increase in the price of XRP, especially if it recovers $17,000 and rises.
