Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- XRP bulls have maintained consistent buying pressure despite the broader market sentiment.
- Further losses in the coming days were possible, but recovery seemed likely after a retest of a critical support level.
Ripple’s CEO Brad Garlinghouse’s argument that XRP is not a security received a major boost after the William Hinman document went public. On the lower time frames, the trend had shifted bearishly as market sentiment darkened.
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XRP saw a sharp rise in March along with the rest of the market. While the rest of the market has since sunk into a downtrend, especially at the end of April, the XRP bulls have managed to defend a good chunk of their March gains.
The $0.5 loss was a blow, but bulls still have ammunition to fight back
Source: XRP/USDT on TradingView
Based on the March move to $0.585, a series of Fibonacci retracement levels were plotted. It showed that the 78.6% level at $0.398 would be the last stronghold of defense on the higher timeframes. The OBV’s steady upward trend over the past few months has been encouraging and showed the demand for XRP.
The daily RSI dropped below the neutral 50 to signal a shift in momentum. Still, the market structure remained bullish and the shift in structure to bullish was green-marked at the $0.488 level in late May. A drop below USD 0.443 would change this. Meanwhile, the 4-hour chart revealed that a downtrend in a lower time frame was already underway.
Therefore, bulls can wait for a bullish shift in the lower timeframes before buying XRP. It was still possible to visit the $0.443 support level and assess buyers’ reaction before looking for opportunities.
Network growth started ticking higher towards the end of May
Source: Sanitation
In the second half of May, both measures of social dominance and network growth began to climb higher. If this trend continues, especially in terms of growth, it would likely boost demand for XRP.
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The average coin age took a sharp plunge two weeks ago, but started to rise again, showing network-wide accumulation. This does not necessarily translate directly into price gains. Hence, XRP bulls may wait for a breakout above $0.56, or a retest of the $0.44 region, before looking for buying opportunities.
