At the time of writing, XRP was valued at $0.588, hovering around the middle range of $0.585. Since August 2023, this range has been established with no clear signs of a breakout in favor of the bulls.
The low volatility surrounding XRP serves as a warning sign for traders. While Bitcoin (BTC) has experienced a 14.3% increase in the past two weeks, XRP has only seen a 3.25% rise, which may concern swing traders looking for stronger relative token performance.
Consolidation around the Middle Range
The wider range for XRP spans from $0.461 to $0.71, with the midpoint at $0.585. Recently, a smaller range has formed between $0.52 and $0.625 over the last couple of months.
XRP’s price movement suggests a sideways trend since July, with occasional spikes in volatility, like the one seen in early August. The daily RSI currently stands at 54, indicating a lack of strong momentum for the asset going forward.
Notably, the On-Balance Volume (OBV) has shown a gradual increase during this period of calm. This indicates consistent buying pressure, potentially setting the stage for a rally once the consolidation phase ends.
Yet, the prevailing sentiment suggests a higher likelihood of a price retreat from the $0.6-$0.62 resistance range rather than a breakthrough beyond it, especially considering the subdued trading volume in recent weeks.
Conflicting On-Chain Data for XRP
A significant surge in dormant coins was recorded on 21 September, usually signaling increased token activity and indicating a potential price correction. However, the subsequent price movement resulted in only a modest 4.8% drop. Additionally, the average coin age continues to trend upward, suggesting accumulation of XRP.
Short-term MVRV remains positive, indicating potential selling pressure from profit-taking activities since mid-September. Despite this, XRP has maintained its value around the $0.58 mark.
Disclaimer: The views expressed here are the writer’s own and do not constitute financial or investment advice.