Profit-making XRP holders should expect this next week
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Ripple's XRP has finally had a bullish performance after struggling to find a direction last week. However, his promotion especially in the last three days has not been as strong as that seen in some of his peers.
Will the return of bullish momentum be enough to push it into the next support and resistance range?
A close look at XRP shows that it is stuck inside a Fibonacci support and resistance range. If we look at his previous rally in September, we see that he experienced strong resistance above the $0.53 price level.
Each retest of this level led to some bearishness, which later found strong support at $0.43.
The price has been trading in the same range for more than four weeks. The last retest of the lower range occurred on October 20, after which the price gradually moved higher.
Interestingly, the lower range is also supported by the Fibonacci line at the 0.236 retracements. If further gains are expected, then XRP could build an 11% gain before retesting the 0.382 Fibonacci level.
The most recent bounce came from the 200-day moving average. Most notably, a golden cross was formed afterward. This means that the 50-day MA has crossed over 200 MA and is generally considered a bullish sign.
Another important price-related observation is that the RSI has moved inside an ascending support line. In other words, the RSI indicates that the relative strength of XRP is increasing in favor of the bulls.
The other side of the coin
While the golden cross and relative strength highlight more upside potential, several XRP online indicators paint a different picture. For example, weighted sentiment and development activity remain in their lower range.
Low growth activity and underweight sentiment could explain why XRP has had limited gains.
However, Ripple has been making moves that can boost investor sentiment while ensuring healthy development.
Ripple recently announced the launch of a new $250 million creator fund.
The fund is part of the network's plan to incentivize Ripple users to be more active on the network. The announcement also highlights Ripple's growing focus on the NFT market.
Many major blockchain networks have also increased their determination to seek more growth opportunities in the NFT market.
XRP investors wondering if this is a good time to buy may have noticed that there is a significant conflict for the bulls. This is despite many bullish signals.
The distribution of their supply revealed that most of the large whales bought in the latest sale.
However, addresses with more than 10 million XRP have steadily slashed their balances in recent months and have continued to do so in recent weeks.
Oct 28, 2022