Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
Ripple [XRP] posted gains of 5.4% in the past 24 hours to break the $0.494 resistance level. Buyers were encouraged by the altcoin’s rally from the $0.455 support level on May 25.
With Bitcoin [BTC] from $26.5k to $27.7k in the last 48 hours, there is a good chance that XRP could post more gains in the near term.
XRP bulls turn short-term bias into bullish
Source: XRP/USDT in trade view
The four-hour chart highlighted the upper hand that XRP bulls have had over the past two weeks. The price rose from the $0.417 support level on May 17 with two strong bullish candles. This flipped the $0.455 resistance to a support level.
A retest of the new support level spurred bulls to claim another resistance, with the $0.494 level giving way to bullish momentum.
Bulls would be looking for a third resistance level with indicators on the chart supporting another bullish attack. The RSI climbed sharply into the overbought zone and stood at 82 at press time, signaling intense buying pressure on XRP.
The OBV also recorded a volume increase of $341.43 million in the past 24 hours. In addition, the CMF highlighted the buying pressure behind XRP with a value of +0.20.
XRP’s price action and chart indicators deduced that further gains were possible. The next target for bulls is the April high of $0.547. However, bears would like to use the $0.540 resistance and the bearish order block below it to stop the bullish momentum.
How much are 1,10,100 XRPs worth today?
Bullish accumulation made the market sentiment clear
Source: Sentiment
A view of XRP’s seven-day Market Value to Realized Value (MVRV) ratio at Sanitation showed that XRP had entered overvalued territory. The MVRV metric at the time of going to press was approximately 5.17%. This showed that XRP buyers were making significant gains.
The 90-day average coin age has also been on an upward trend since April 1, indicating network-wide accumulation over the past two months. This would allow bulls to push prices higher in the short/medium term. Traders should closely monitor the market conditions and developments surrounding the XRP vs SEC case.
