- XRP has been in a slightly weak market structure.
- The bears could push the price to $0.3327 or lower.
- A continued accumulation of whales could reverse the bearish outlook.
Ripple (XRP) On a downward trend since early December 2022. With her lawsuit with the Securities and Exchange Commission running home, recent rumors of a possible settlement sent the price of XRP lower.
Read waves [XRP] predict the price 2023-24
At press time, XRP was trading at $0.3435 as the bulls and bears met for leverage. If bears take control, XRP could break below the current parallel channel pattern.
Will XRP break away from the parallel channel?
Since the November market crash, XRP has formed a parallel channel pattern. At press time, XRP price action is near the lower boundary of the channel. But was a breach of the limit ($0.3327) possible?
The Relative Strength Index (RSI) saw a slight increase, followed by a decline in the lower range. It was at 35, well below the neutral 50 line. This showed a recent spike in buying pressure, but heavy selling pressure prevented the upside.
In other words, the sellers still have leverage in the market. As such, the bears could push the price down to $0.3327 or $0.3210, which could act as short selling targets.
But there has been a huge backlog as the discounted XRP prices have attracted demand. Notably, the Money Flow Index (MFI) rose sharply, indicating that buyers have accumulated XRP. If the rally continues, XRP may breach the current resistance at $0.3532, invalidating the above bearish predictions.
Such an upward move could cause XRP to face two hurdles in the future, including the midpoint of the channel at $0.3700.
How do Many XRP Can you get 1 dollar?
XRP recorded demand in the derivatives market and massive accumulation of whales
Based on the above distribution data, whales holding 1-10 million XRP coins dumped massively on December 19 (shown at the bottom on the blue line) when everyone swarmed. Thus, the group caused selling pressure on the aforementioned day of its own accord.
However, at the time of publication, each batch was cumulative, with each line showing a steady increase.
Additionally, XRP has seen an increase in demand in the derivatives market for the XRP/USDT pair. Notably, Binance’s funding rate for the pair has fallen significantly from negative territory to positive territory at the time of publication.
Similarly, the recent negative weighted sentiment for XRP improved significantly as it approached the neutral line. All of these circumstances could mean an imminent XRP price reversal.
Despite this, XRP development activity has also declined sharply. Could a slowdown in development activity alter investor confidence and prevent a price reversal?