- XRP faced strong selling pressure in recent weeks, evidenced by the OBV.
- The price action also showed a bearish bias despite the bounce to $0.62.
Ripple [XRP] faced strong selling pressure in the past few weeks. A recent AMBCrypto analysis was vindicated when XRP closed a trading session below a demand zone.
Additionally, a fair value gap was filled before the prices reversed southward again.
In other news, a failed attack on the Bitfinex platform on the 14th of January saw prices positively impacted. Yet, the downtrend has not changed.
The fall below $0.6 handed the bears control
The red box represented a former bullish order block, now a bearish breaker. It was a stern resistance zone on the 12-hour chart of XRP.
The sharp drop in the 3rd of January left behind a fair value gap, which can also be termed as an imbalance (white box).
On 11th January the prices bounced to this zone, filled it, collected liquidity in the $0.62 region, and then resumed the downtrend. This was what was anticipated in the recent XRP technical analysis.
The RSI was below neutral 50 to highlight downward momentum was present. The OBV has also been falling since December to underline the volume of selling in the market.
Therefore, another retest of the $0.528 level might not yield a positive result for the bulls.
January witnessed a large boost in active addresses
The Weighted Sentiment of XRP has been in the negative territory for the majority of the past two months. The MVRV ratio has also trended downward, and was at -5.36% at press time.
This showed the asset was undervalued but also highlighted a lack of confidence from holders.
Read Ripple’s [XRP] Price Prediction 2024-25
The Age Consumed metric saw a huge spike on the 1st of January, just before the prices crashed. This spike was indicative of a large amount of previously dormant XRP being moved, likely for sale on exchanges.
Meanwhile, the uptick in the active addresses toward the end of December was interpreted as a positive. But in hindsight, it appears indicative of selling pressure and profit-taking activity.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
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