ripple [XRP] It is finally regaining its bullish slope after about three weeks of weak price action. The cryptocurrency retreated from its short-term bullish channel after a bearish performance in late August. XRP’s bullish performance over the past three days has pushed it back into the previous range. But the question remains – can it maintain the current momentum?
XRP made a 14 percent gain from a weekly low of $0.31 to a 24-hour high of $0.36. It is now trading on the same line that previously worked as support. XRP previously showed bullish weakness in the last 10 days of August before capitulating and forming the next support level at $0.31.
The upside for XRP over the past 24 hours was limited after it touched the 50 day moving average (MA). Its previous attempt to cross above the 50-day moving average was thwarted, leading to further price weakness.
XRP has already given up some of its gains after coming under increasing selling pressure. The similarities between the two cases highlight the potential for a bearish bounce.
On the other hand, the Relative Strength Index (RSI) for XRP is indicating stronger momentum at the current price level. The Money Flow Index (MFI) also confirms an increase in the backlog compared to the result at the end of August. This result could support more upside.
XRP Options and Short Term Profits
Series metrics show an increase in any activity over the past three days. The number of electoral deals for deals worth more than $1 million recorded an influx of electoral activity that likely contributed to the march.
Option activity is in line with observations in the XRP options supply distribution, as well as recent price action. For example, whales with between 1 million and 10 million coins increased their balances significantly between September 7 and 9. The same category has recorded some outflows in the past 24 hours, which is in line with the prevailing selling pressure at the time of publication.
Addresses with more than 10 million XRP registered a slight increase in the last 24 hours. This confirms that there is still some buying pressure preventing a deeper bounce.
It doesn’t look like it’s going north
Headwinds for XRP can lead to many volatile price movements including short-term retracements. However, investors should take note of these latest notes.
Voting activity over the past three days has been much higher than it has been in the past 30 days. There has also been a lot of hype about the possible outcome of the SEC-Ripple lawsuit although no ruling has been announced yet.