warning: The results of the following analysis are the author’s opinions only and should not be considered investment advice.
- The higher time frame structure was bullish for XRP
- The price was at a much lower time frame level
Bitcoin [BTC] It is trading at $19.1K at the time of writing. $19K and $18.6K are the key lower time frame support levels. A move below $18.6K could trigger a sell-off. The weekend has been very quiet for Bitcoin and XRP so far.
Here are the AMBCrypto 2022 XRP Price Predictions
Both have been trading within a narrow range in recent days. However, on October 17, this deeply wounded spring was able to relax. The volatility in the coming days could make XRP look for liquidity on the downside before rallying higher.
XRP has an ascending structure, $0.45 is the key
On the 12-hour chart, XRP formed a bearish divergence (orange) and declined to $0.45. However, this downward move did not go below the previous lows of $0.44. In recent days, the pullback signaled its end when it broke through the recent highs and lows above $0.488.
In addition, the bearish divergence was followed by a hidden bullish divergence (orange dotted). This development indicates that the previous uptrend may continue.
The two lower time frame levels to watch are $0.488 and $0.477. A move below $0.477 will tell traders to wait for a reaction near the $0.45 mark. Meanwhile, risk-loving traders can look forward to actually bidding on XRP. The Relative Strength Index (RSI) rose again above the neutral 50 level, to show that the bulls are slowly imposing their intentions on the price.
Unbalanced trading volume (OBV) has bottomed in recent weeks, but buying pressure was not explosive according to OBV. On the hourly chart, the $0.486-$0.478 area formed a bullish order block where long positions could be considered.
The average age of the coin has increased in the last month
Sentiment data showed that the average age of coins has increased since mid-September. This indicates that the accumulation phase may be underway. Meanwhile, strong selling pressure came as dormant trading rebounded. However, the scale on the chart does not always precede the price action.
The indication of the accumulation phase at the network level was a bullish notion for XRP. The higher time frame price action was also in favor of the bulls. However, caution was wise. Bitcoin sits on top of the $19,000 support. Its rally above $19.6K a few days ago could be an engineering move to grab liquidity and tackle the bulls’ infiltration before another drop. However, the October 17 high and low may provide clarification for the coming week.