As Ripple’s value surged in November, it began to climb from its starting point of $0.44. However, despite the price attempting to break past the $0.47-$0.54 zone, it was unable to do so. This order block came from 10 May, and opposed the buyers. In the past week, the outlook turned sour, as the sentiment hardened to be decidedly bearish.
The network’s loss-making performance continued, despite a fall in profitability. Could the downtrend in the market and the coin’s long-term trend be turning around for XRP? Will rallies to the $0.42 region see a quick reversal, as the inefficiency during the recent drop means that the price is likely to fall again?
After tumbling from $0.42, another range has formed that extends downward.
Throughout September and October, Ripple’s value varied between 55 cents and 42 cents. The past week’s selling saw XRP decline sharply below its range lows. The price of bitcoin plummeted to its lowest point on record at $0.33 on Tuesday. The $0.32-$0.33 region has been a crucial support zone for traders since early September.
In the past few days, XRP’s price bounced violently between the $0.33 and $0.39 levels on the price charts. However, there wasn’t much buying activity observed, which seemed to suggest that there wasn’t a lot of interest in the product. According to the On-Balance Volume indicator, there was a lot of selling pressure in November, causing the indicator to fall below a support level from September. The price of bitcoin continued to rise, jumping from $0.33 to $0.39 in a matter of minutes. This suggested that sellers remained in control, despite the sudden increase in demand.
The market’s bearish bias was clear on the daily timeframe, and a daily session close above $0.402 would have had to happen in order for the bias to change. Yet, the entire zone from $0.396 to $0.42 was likely to offer strong resistance to buyers. Throughout May and June, this area was one that bulls struggled to break. In July and August, they ran into some difficulty, but September was their month.
Now that XRP has been brought back below the support level, long-term buyers might want to wait for a move back up to support before buying. Alongside the market’s structure, the Relative Strength Index (RSI) was also bearish, but it was pushing to break past the 45-50 region at press time.
Mean Coin Age sees a drop in October and November after some accumulation in September
Since late August, the Mean Coin Age metric has been tracking ahead of schedule. The climbing continued until October 28. The inference was that, during this time, there was a trend of XRP tokens not being moved. In November, something changed that made things a little different.
The market value of a security falls below its real value on average when people holding the security are unhappy with its price. The good news is that there might not be as much pressure to sell the stock this week.
Watch for any spikes in dormant circulation, as this could mean large selling pressure is near.
