As of the latest update, XRP was priced at $0.588, hovering near the middle ground of $0.585. This range has been established since August 2023, showing no signs of a potential bullish breakout at this point in time.
The lack of significant price fluctuations in XRP implies that traders should exercise caution. Over the past fortnight, Bitcoin [BTC] has recorded a 14.3% surge in comparison to XRP’s modest 3.25% uptick – a concerning trend for swing traders looking for tokens showing relative strength.
Compact range formation around the middle price point
While the broader range for XRP spans from $0.461 to $0.71, with the midpoint set at $0.585, recent weeks have witnessed the formation of a narrower range between $0.52 and $0.625.
Observing the token’s price action indicates a sideways trend since July, interspersed with brief spikes in volatility like the one observed in early August. The daily RSI stands at 54, signaling a lack of robust momentum surrounding the asset in September.
During this period of relative stability, the OBV metric has exhibited a gradual upward trajectory, indicating consistent buying interest that may pave the way for a rally after the current consolidation phase.
Nevertheless, the current scenario suggests a higher likelihood of a price retreat from the resistance zone of $0.6-$0.62 rather than a decisive breakthrough, especially given the subdued trading volumes in recent weeks.
Conflicting signals from XRP’s on-chain data
A significant surge in dormant coins was observed on 21 September, typically signaling increased token movement and hinting at a potential price correction. However, the subsequent price shift only amounted to a 4.8% decline. Concurrently, the rising mean coin age indicates a trend toward XRP accumulation.
Short-term MVRV metrics have displayed positivity since mid-September, indicating potential selling pressure from profit-taking activities. Despite this, XRP has managed to maintain its position around the $0.58 mark.
Disclaimer: This analysis should not be construed as financial, investment, or trading advice; it represents the personal opinions of the writer.