XRP Shows Tentative Bullish Trend: Can It Overcome Bearish Pressure?

XRP is experiencing a cautious bullish trend, marked by bull flags and higher lows. However, bearish attempts and fluctuating indicators raise questions about the sustainability of this momentum.

Article Body:

Ripple's XRP has surprised many by riding a bullish wave in recent weeks, sparking interest among investors and analysts. However, the crucial question remains: Can XRP maintain this upward trajectory against persistent bearish pressure?

Chart Analysis:

  • MACD: The Moving Average Convergence Divergence (MACD) line hovers around the zero line, indicating a balanced market. Occasional bullish spikes are quickly neutralized by bearish dips, revealing the ongoing struggle between bulls and bears.
  • RSI: The Relative Strength Index (RSI) shows brief periods of increased buying pressure, but these are not sustained, suggesting that bullish trends are tentative and lack continuous support.
  • Bull Flags: Multiple bull flags on the chart indicate continued bullish momentum. Each flag forms at a higher level, hinting at a gradual upward trend.
  • Inverse Head and Shoulders: There have been several attempts to form an inverse head and shoulders pattern, but these are often disrupted by bearish reversals, highlighting the ongoing battle between bulls and bears.

On-Chain Metrics:

  • Social Volume: XRP's social volume has declined since the beginning of the year but is showing improvement compared to a month ago.
  • Social Dominance: Social dominance is on an upward trend, though not at the peak levels seen in December and January.

Conclusion:

XRP is currently experiencing a cautious bullish trend, characterized by bull flags and higher lows. However, bearish attempts to reverse gains and fluctuating indicators like MACD and RSI raise concerns about the sustainability of this momentum. For the bullish trend to hold, buying pressure needs to significantly increase and overcome the persistent bearish pressure.

XRP’s opening and closing prices over the days show a general downtrend with slight recoveries. As seen in the chart below, XRP’s  MACD line fluctuates around the zero line, indicating a market in balance between the bulls and bears. 

Source: TradingView

The presence of blue peaks above the signal line briefly suggests bullish momentum but is quickly neutralized, as seen by subsequent red troughs below the signal line.

 

Bullish momentum to halt or…?

Occasional spikes in the RSI show brief periods where buying pressure increases, but these are not sustained, indicating that any bullish trends are tentative and not strongly supported by continuous buying pressure.

Source: TradingView

The presence of multiple bull flags on the chart above, notably following upward movements, signals continued bullish momentum. 

However, these poles are followed by horizontal or minor retracement movements forming the “flags,” as shown in the chart above. This pattern typically indicates a consolidation phase.

The price has shown resilience by maintaining levels above earlier resistance-turned-support zones. 

Each bull flag forms at a higher level than the one before it, hinting at a small yet consistent bullish sentiment.

Source: TradingView

Over the past five days, XRP has seen instances where an inverse head-and-shoulders pattern might have formed. However, these instances seem cluttered and overlapping due to frequent markings, indicating consistent attempts by the bears to reverse the bullish trend.

Current chart movements around the marked areas suggest frequent tests of resistance levels. XRP’s social volume has declined since the start of the year, but it is currently doing better than it was a month ago.

Source: Santiment


Realistic or not, here’s XRP’s market cap in BTC terms


Social dominance also appears to be on an upward trend, although not at the peak levels observed in December and January.

All in all, XRP’s bears are actively fighting the bulls, and for the momentum to hold, buying pressure must increase significantly.

 


Jun 18, 2024

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