XRP breakout of its past resistance but can the price surge persist
Ripple XRP finally breakout of its past resistance but can the price surge persist? Recently on Tuesday XRP break out of its major resistance as it recovered from the price drop and reached $0.42.
KEY TAKEAWAYS
- XRP finally breaks through its resistance
- Several indicators show a Bullish advance for XRP in the future as well
There are certain technical indicators that support bullish sentiment. This means that the investors are optimistic about XRPs price appreciation. Furthermore, it is said that XRP is becoming easier to use and there is also the addition of NFT capability to the ledger This development could help maintain the bullish sentiment. As it will expand the potential use cases of XRP beyond just currency or payment methods.
The recent break out past resistance was promising indeed
On 21st March, XRP break out past its former range which was between $0.33 to $0.42, with the midpoint at $0.377. This happened in only one day a true example of a support-to-resistance case.
Despite breaking out of its previous range there are still potential resistance levels that may halt the bullish advance of XRP. The level is $0.45 and $0.51. The price may bounce back to the previous one. Also if the four-hour chart depicts a bearish trend it will clarify that the breakout had already lost its strength,
Moreover, the RSI Relative Strength Index also shows a bullish momentum for the coin. The On-Balance Volume has also been rising. This is also a positive sign of increased buying pressure. If XRP still experiences a decline from $0.42 between $0.4 or $0.39. These might act as the support levels where to buy might step in to buy XRP. But any decline to $0.39 or more could indicate potential weakness and bear sentiment.
What does the MVRV ratio say?
The MVRV ratio is a metric to measure the profit or loss of investors in buying XRP over a certain number of days. A high MVRV value suggests that the investors are in profit. This may even lead to an increase in selling pressure.
The 90-day MVRV ratio of XRP indicated that the coin has reached its three months high. This was followed by a wave of increased selling pressure, as the retest of the high on the price chart indicates.
Interestingly, despite the increase in selling pressure the MVRV ratio of XRP still remained higher than it has been previously since December, Additionally, the 90-day mean coin age analysis of XRP showed a decline over the past week. This indicated an increased transfer of XRP among addresses. The 90-day dormant circulation also witnessed a spike on March 21st, which also indicates selling pressure.
Due to increase selling pressure with a highly positive MVRV ratio, the traders must be cautious. They should avoid blind bidding on XRP at current rates. As more selling can follow, the investors must make informed decisions before trading.