XRP had a strong start to November, rising from $0.44 to $0.5. However, as shown on the charts, the price was unable to break over the $0.47-$0.54 range. From 10 May, this was a bearish order block that was opposing the purchasers. In the last week, the mood has shifted from neutral to bearish.
The network’s realised profit and loss were both negative, and profitability was also down. Can XRP reverse its longer-term adverse trend given the market and coin’s gloomy sentiment? Will any rallies to the $0.42 region be short-lived due to inefficiency during the current drop?
Has another range formed following the plunge from $0.42?
From 23 September to 8 November, XRP traded within a range from $0.55 to $0.42. The past week’s selling saw XRP decline sharply beneath the range lows. It descended as far south as the $0.33 level. The $0.32-$0.33 region has been an important support zone since early September.
In the past few days, XRP witnessed a violent bounce between the $0.33 and $0.39 levels on the price charts. Yet, there did not seem to be a significant amount of buying volume. According to the On-Balance Volume (OBV), the selling pressure was so great in November that the OBV slipped beneath a support level from September. This suggested that sellers continued to remain dominant, despite the swift bounce from $0.33 to $0.39.
The market structure was also bearish on the daily timeframe, and a daily session close above $0.402 would be required to flip the bias to bullish. Yet, the entire zone from $0.396 to $0.42 was likely to offer stiff resistance to the buyers. From May all the way to mid-September, this region was one that bulls struggled to break.
Now that XRP was back beneath this zone, longer-term buyers might want to wait for a move back to support before buying. Alongside the market structure, the Relative Strength Index (RSI) was also bearish, but it was in an attempt 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
The Mean Coin Age metric had been in advance since late August. This ascent lasted till 28 October. The inference was that, during this period, there was a trend of accumulation, as XRP tokens were not being moved. However, this changed in November.
The positive 90-day Market Value to Realized Value (MVRV) also shifted to negative in November to signal that 90-day holders were underwater on average. The upside to this fact was that selling pressure might not be as intense as it was over the past week.
Any spikes in the dormant circulation can also be something to watch out for, as they tend to signal large selling pressure around the corner.