Disclaimer: The information provided is not financial, investment, trading or other advice and is solely the opinion of the author.
- XRP was in a bearish market structure and could drop to the 23.6% Fib level ($0.3839)
- XRP has seen a decrease in transaction volume and active addresses over the past 24 hours.
Ripple [XRP] It was trading at $0.3918 and is set for further price correction in the near term. Interestingly, the two-hour time frame recorded a higher moving average converging divergence (MACD) crossover, indicating a buying opportunity.
However, the four-hour chart has shown an unlikely bullish crossover from the bearish structure. If the bears get more control and Bitcoin [BTC] Dropping below $17K, XRP could reach the 23.6% Fib level ($0.3839).
Read the XRP Price Prediction 2023-2024
A possible breach of support at the 38.2% Fib level ($0.3907): will the bears continue the momentum?
XRP may breach the current support level at the 38.2% Fibonacci retracement level ($0.3907). Additionally, XRP may face a further drop to retest support at the 23.6% Fib level ($0.3839).
Two key technical analysis indicators point to the aforementioned bearish outlook. Specifically, the Relative Strength Index (RSI) indicator slipped below the 50-neutral mark and crept sideways. This shows that buying pressure is decreasing, and selling pressure is increasing over time.
Additionally, on-balance sheet (OBV) showed a decline indicating a decrease in trading volumes. Therefore, it can weaken the buying pressure enough to increase the bulls. Put differently, sellers can benefit more from reduced trading volume and push up XRP prices.
However, a candlestick closing above the 50% Fib level ($0.3962) can reverse this bearish trend. In such a situation, XRP may indicate a new resistance level at the 61.8% Fib level ($0.4017).
XRP recorded a decrease in active addresses, volume and sentiment
according to Centimeter, XRP recorded a drop in active addresses (red) in the last 24 hours. Similarly, the decrease in active addresses engaged in business led to a decrease in the volume of transactions (white). Therefore, this indicates a decrease in buying pressure.
Moreover, XRP’s sentiment was deep in the negative territory. It showed that most analysts are bullish on the crypto asset and could send the price down.
However, any bearish sentiment on BTC, especially if it regains $17K and moves higher, could push the price of XRP higher. So it will be useful to monitor the performance of BTC and XRP on-chain metrics.