Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- XRP bulls defended the 50 EMA.
- The four-hour chart was bullish, but trends on CEXs could complicate bulls’ efforts.
On March 21, Ripple [XRP] appreciated 30% amidst renewed optimism that Ripple Labs could win against the SEC lawsuit. It jumped from $0.3733 to $0.493 but retraced after Bitcoin [BTC] temporarily lost hold of the $28k zone.
Read Ripple’s [XRP] Price Prediction 2023-24
At press time, BTC’s value was $27.50k, and it could block XRP from clearing the key obstacle at $0.4491. As such, XRP’s price action in the next week will be largely determined by new developments on the SEC lawsuit and BTC’s price movements.
Bulls defended the 20 EMA – can they sustain the recovery?
Source: XRP/USDT on TradingView
The $0.4118 support level checked XRP’s retracement. But the recovery was blocked at $0.4491, setting it to a correction. However, bulls have defended the 20 EMA (exponential moving average) of $0.4134, prompting another short-term rally. Therefore, bulls must clear the $0.4491 obstacle to continue with the recovery.
A close above $0.4491 could tip bulls to push XRP to the bearish order block of $0.4746. A retest of the $0.5 level could be likely if bulls could clear the bearish order block.
Alternatively, near-term bears could gain market entry if XPR closes below $0.4491. They will likely sink XRP to retest the 20 EMA or the $0.4118 support. Any drop below $0.4118 could attract increased selling pressure, pushing XRP to 200 EMA or $0.3982.
The Relative Strength Index (RSI) bounced sharply from the 50-mark, showing increased buying pressure. Similarly, the Accumulation/Distribution indicator exhibited an uptick, showing the asset was undergoing a short-term accumulation phase. Collectively, these trends show’ bulls’ leverage in the market at press time.
Exchange Flow Balance was positive
Source: Santiment
According to Santiment, XRP’s exchange flow balance was positive (84k). This was evidence that more XRPs moved in than out of CEXs. It indicated a short-term sell pressure as more XRP could be available for offloading on CEXs.
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A drop in supply outside of exchanges further confirms limited accumulation at press time that could tip short-sellers to offload their holdings. As such, bulls could wait for a close above $0.4491 before making moves.
Nevertheless, considerable whale movements have transacted over $1 million in the past few hours, which could give bulls some hope. However, investors should also track BTC’s price action before making moves.
