Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- So far, the 23.6% Fib level of $0.3814 has proven steady support at press time.
- But fluctuating volumes and bearish sentiment could undermine a strong recovery.
Ripple’s [XRP] recovery could be more difficult over the weekend. In the past 24 hours, Bitcoin [BTC] dropped by 3.5%, as per CoinMarketCap. The king coin’s move has set most altcoins, including XRP, into a short-term correction.
Read Ripple’s [XRP] Price Prediction 2023-24
At press time, XRP’s value was $0.3863 and flashed green, indicating bulls were upbeat about a recovery. However, the recovery could be undermined, as suggested by technical indicators.
The $0.3814 – $0.3885 range: Will the price consolidation continue?
Source: XRP/USDT on TradingView
XRP’s recent drop found a steady hold at the 23.6% Fib level of $0.3814. A subsequent attempt to go beyond the 38.2% Fib level of $0.3867 was thwarted by press time, setting the asset into a price consolidation.
XRP could continue its price consolidation phase within the $0.3885 – $0.3814 range in the next few hours. Therefore, the levels could be targeted for gains. But bulls must be cautious of the 38.2% Fib level. However, XRP could retest the $0.2728 level if BTC breaks below the $21.5k zone.
Alternatively, bulls could comfortably close above the 50% Fib level of $0.3910. Such a move would be an invalidation of the bias described above.
On the three-hour chart, the Relative Strength Index (RSI) was 40 and exhibited an uptick. It indicated a mild bullish momentum at press time. But the fluctuating volumes, as shown by On Balance Volume (OBV), could further complicate bulls’ recovery efforts.
Investors’ confidence dropped as demand faltered
Source: Santiment
As per Santiment, XRP’s Funding Rate for XRP/USDT pair dropped into the negative territory before retreating to the positive side. It shows demand for the asset faltered because its value declined sharply. If the demand steadies, the recovery could be boosted. However, a faltering demand in the derivatives market could weaken the recovery and set the asset into a price consolidation or devaluation.
Is your portfolio green? Check out the XRP Profit Calculator
Besides, XRP’s weighted sentiment was bearish at press time, indicating investors’ confidence in the asset tanked significantly. Alongside fluctuating volume, as evidenced by the hourly active addresses, XRP may face difficulty launching a strong recovery in the next few hours.
But if demand for XRP improves in the derivatives markets and BTC reclaims the $22k zone, the recovery could be strengthened, invalidating the above bias.
