- XRP lacked a definite trend even as BTC surged higher
- Low trading volume and lack of momentum meant a breakout might be unlikely
XRP was trading at $0.588 at press time, close to the mid-range level at $0.585. This range formation has been in play since August 2023 and there are no signs of a bullish breakout yet.
The lack of volatility around XRP meant that traders should be cautious. Over the past two weeks, Bitcoin [BTC] has gained by 14.3% compared to XRP’s 3.25% – A worrisome development for swing traders seeking relative token strength.
Miniature range formation around the mid-range level
Source: XRP/USDT on TradingView
The long-term range extended from $0.461 to $0.71, with the mid-point at $0.585. Over the past two months, XRP appeared to form a smaller range that reached from $0.52 to $0.625.
The price action of the token pointed to sideways price action since July, with periods of high volatility such as in early August. The daily RSI was at 54 and its readings in September highlighted a lack of a strong momentum for the asset.
During this time of calm, the OBV has slowly risen higher. This meant buying volume was steady and supported the idea of a rally after its current consolidation phase.
However, as things stand, a price drop from the $0.6-$0.62 resistance zone appeared more likely than a breakout past it. Especially given the tepid trading volume in recent weeks.
Mixed signals from XRP on-chain metrics
Source: Santiment
The dormant circulation saw a large spike on 21 September. This usually signals a flurry of token movement and raises the likelihood of a price correction, but the price move since then was only a 4.8% dip. Meanwhile, the mean coin age continued to trend higher to indicate XRP accumulation.
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The short-term MVRV was positive and has been so since mid-September. This too is a short-term signal of potential selling pressure from profit-taking activity. And yet, XRP continued to trade around the $0.58-mark.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
