- Ripple’s XRP has experienced some gains in the past week, but is yet to establish a clear uptrend.
- Despite the bearish sentiment, one encouraging factor was the spot CVD which indicated a potential price drop.
- The mid-range resistance at $0.585 has acted as a strong resistance since mid-March, rebuffing buyers yet again.
XRP’s recent gains and the potential for a price drop due to the age-consumed metric make it a cryptocurrency to watch in the coming days.
XRP’s Recent Performance and Future Outlook
Ripple’s XRP has seen some gains in the past week, but it has yet to establish a clear uptrend. The trading volume picked up on Monday the 6th of May, the day of the court briefing. However, the technical indicators and the price action did not favor a bullish bias. The Weighted Sentiment was in decline, according to an AMBCrypto report. Another report highlighted that one metric indicated a potential price drop was imminent due to the age-consumed metric.
Resistance Rebuffs Buyers Yet Again
The nine-month XRP range (purple) extended from $0.46 to $0.71. The mid-range mark at $0.585 has acted as resistance since mid-March. The resistance zone (red box) was also a bearish breaker block, implying a stronger resistance. The Chaikin Money Flow was at 0 indicating a lack of significant capital flow into the market. The Directional Movement Index showed that the +DI (green) was above 26, and the ADX (yellow) was nearly 20. This showed a strong uptrend was nearly in place. It remained to be seen whether this could propel XRP past the $0.585 resistance.
Stability in XRP’s Future?
The Open Interest behind XRP has slowly trended higher over the past week. However, it was not a significant rally. The price made gains of over 10% in the same period, but given the resistance overhead, speculators were anxious about going long on XRP. One encouraging factor despite the bearish sentiment on the OI chart was the spot CVD. It has formed a bottom over the past three days, meaning the previously steady downtrend has ground to a halt. This would be the first step in a recovery. It indicates that buying and selling pressure was balanced in the spot markets.
Conclusion
As things stand, XRP’s chances of a slump toward $0.48 were good given the age-consumed metric. However, the recent stability in the spot CVD and the slow upward trend in Open Interest could be the first steps towards a recovery. Investors and traders should keep a close eye on these developments in the coming days.
