XRP witnessed a bearish start to May. Its market structure was bearish on the daily timeframe, and from 1 May to 11 May, XRP fell from $0.4724 to $0.41. This amounted to 12.91%, but the bulls began to change their trajectory thereafter.
Over the past week, the structure was flipped to bullish. Moreover, the Fibonacci retracement levels showed the bullish reaction occurred from an important support zone. With prices above the $0.5 mark, the bulls have reason to be confident.
The Fibonacci golden pocket to the rescue
Source: XRP/USDT on TradingView
In March, XRP rallied from $0.347 to $0.585, a 68.4% move in 17 days. The swing high and low of this move were used to plot a set of Fibonacci retracement levels. The token spent April and a good chunk of May retracing these gains.
The retracement ended in the region between the 61.8% and 78.6% retracement levels. This region is commonly referred to as the golden pocket, as it is a place where investors can expect a retracement to end and the former trend to continue.
The RSI climbed back above the neutral 50 value and retested it as support before another surge, showing strong bullish momentum.
The CMF also ascended above +0.05, but this happened back on 2 May, when XRP was still biased southward. This indicated a significant capital influx and was a sign of buying pressure.
The break in market structure to bullish was highlighted in orange when a recent lower high was breached. Hence, a retest of this same level was a possibility over the next week before further gains.
The network growth mirrored social performance but accumulation was underway
Source: Santiment
The 90-day mean coin age began to trend upward in early April and has continued to do so until the end of May. The metric did see a downtick on 1 June but it remains to be seen if the bulls can continue to drive it upward.
The uptrend denoted the accumulation of XRP across the network.
Realistic or not, here’s XRP’s market cap in BTC’s terms
The token’s social dominance began to pick up in mid-May, and alongside it, the network growth also began to trend upward. It seemed reasonable that these two metrics would move in tandem. To reinforce this point, the weighted sentiment also began to pick up swiftly over the past two weeks.
Overall, the long-term picture had a bullish tint to it. To the north, the Fibonacci extension levels showed the 23.6% level at $0.641 as a likely target for the bulls. However, this is likely only if bulls can continue to drive the XRP rally.
