- XRP flashed some bullish potential, but its trading volume has fallen recently
- A revisit to the range low or just below it could offer a good buying opportunity for swing traders
In a recent report, it was highlighted that XRP registered a neutral MVRV score, but also an elevated NVT metric. These conflicting signals showed that although the altcoin aligned with accumulation phases from the past, its network utility has not been expanding as rapidly as the price.
XRP could push past the short-term range highs soon
Source: XRP/USDT on TradingView
After XRP’s breakout from the descending trendline resistance (white), the token has been on a steady uptrend. It has set consistent higher highs and higher lows since mid-April. Additionally, the OBV has also been on an uptrend.
Therefore, the slow recovery of XRP was backed by steady demand. The moving averages showed that momentum was bullish and marked out dynamic support levels.
The MACD agreed with the bullish momentum’s finding, but it was on the verge of making a bearish crossover above the zero line. This would signal a slowdown in the upward momentum.
The Fibonacci retracement levels at $2.47 and $2.7 were the next key resistance levels. They underlined that the apparent recovery of XRP over the past month might just be a pullback before the next leg south, as seen from higher-timeframe price charts.
Source: XRP/USDT on TradingView
The 4-hour chart revealed a range formation between $2.3 and $2.44. Over the past couple of days, the range high has rebuffed the bulls, while the mid-range level at $2.37 has served as a solid support. It may be possible that XRP would oscillate between these levels over the next week as well.
However, it must be noted that the bullish momentum of Bitcoin [BTC] could spur XRP higher. In the last few hours, BTC has shot past the $104.8k short-term resistance. On the other hand, the low trading volume implied that traders could wait for a high volume move to make their decision.
The 2-week liquidation heatmap highlighted the region below the range lows, at $2.26, as the next magnetic zone of note. However, it is still unclear if XRP would push lower, since the $2.37-level was a sturdy short-term support.
The upward BTC momentum might push XRP higher. In that case, the short liquidations around $2.46 could fuel XRP gains. Traders should be prepared for either scenario, with a northbound move appearing more likely at press time.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
