Disclaimer: The information presented does not constitute financial, investment, trading or any other type of advice and solely represents the opinion of the author
- Market structure and momentum has been sharply bearish for XRP.
- A move above $0.365 could indicate a bullish intent.
Ripple price charts [XRP] on the lower time frames looked easy. The price reached an area of significant support and the bulls have defended the level well so far. However, it was a weekend and volatility was low.
Read Ripples [XRP] Price prediction 2023-24
However, December 19 could shed more light on the momentum for XRP and the broader crypto market for the next week. The direction of the S&P 500 has recently been bearish. A continuation of the same could result in increasing selling pressure behind Bitcoin [BTC] and XRP once again.
XRP finds support at $0.35 and represents the likelihood of an upward move
Source: XRP/USDT on TradingView
Market structure was sharply bearish on the two hour chart. At press time, the asset is trading within a bullish H4 order block. This order block was formed on November 21st and later that week an upward move broke the market structure and flipped it in favor of bulls. This highlighted the demarcated zone as a bullish order block.
In the ensuing move, XRP surged to $0.41 but no further. Last week’s selling pressure led prices to retest resistance at $0.398 and drop. The $0.37 support level has not held, but the $0.35 zone has been well defended. Therefore, aggressive buyers can attempt to buy XRP within this order block, placing a stop loss below the $0.345 support.
It’s possible that December 19th will likely set the momentum for the next week. If the sellers find strength and force prices below the bullish OB, a retest of the same zone will present selling opportunities. However, if XRP can scale to $0.365 and flip the structure in favor of the bulls, a short-term trend reversal would be signaled.
When XRP plummeted on December 16th, it left an inefficiency on the hourly charts. Delimited by the white box, this FVG would be on the bulls’ agenda for the coming week. If $0.37 is reclaimed as support, another buying opportunity would be available.
Open interest saw a slight surge, but it would take far more fuel to ignite bullish flames
Source: Coinalyze
Over the weekend, the price dipped into the support zone and the OI eventually halted its descent. It has yet to establish an uptrend, indicating that futures traders are yet to get excited about the price action.
Once again, December 19 could bring some clarity to futures traders. A slow move back above $0.365 if accompanied by a rise in OI would indicate that the bulls have found strength. Meanwhile, a flat OI and rising prices might suggest that $0.35 would serve as resistance and would face a rejection instead.
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