- XRP was in a slightly weak market structure.
- Bears could push the price to $0.3327 or lower.
- Continued accumulation by whales could negate the bearish forecast.
Ripple (XRP) has been in a downward trend since early December 2022. With his lawsuit with SEC looming, recent rumors of the possible settlement pushed the price of XRP downwards.
Read Ripples [XRP] Price prediction 2023-24
At the time of writing, XRP was trading at $0.3435 as bulls and bears battle it out for leverage. If bears take control, XRP could break below its current parallel channel pattern.
Will XRP break from the parallel channel?
Since the November market crash, XRP has formed a parallel channel pattern. At the time of publication, XRP’s price movement was close to the lower limit of the channel. But was a breakthrough of the border ($0.3327) possible?
The Relative Strength Index (RSI) showed a slight increase followed by a drop into the lower range. It was 35, way below the 50 neutral mark. This showed a recent uptick in buying pressure, but intense selling pressure blocked the uptrend.
In other words, sellers still influence the market. As such, bears could push the price down to $0.3327 or $0.3210, which could act as short selling targets.
However, massive accumulation was underway as XRP’s lowered prices attracted demand. In particular, the Money Flow Index (MFI) has risen sharply, showing that buyers had accumulated XRP. If the accumulation continues, XRP could break above the current resistance at $0.3532, invalidating the above bearish forecast.
Such an upward move could set XRP to overcome a number of obstacles, including the midpoint of the channel at $0.3700.
How lots of XRPs can you get for $1?
XRP registered demand in the derivatives market and massive accumulation by whales
Based on the supply distribution data above, Whales with 1M – 10M XRP Coins were significantly dumped on December 19th (shown by the trough on the blue line) while everyone else was accumulating. In this way, the group single-handedly provided sales pressure on that day.
However, at the time of publication, each group was piling up as each line showed an even rise.
In addition, XRP has seen increasing demand in the derivatives market for the XRP/USDT pair. In particular, the Binance Funding Rate for the pair retreated massively from negative to positive territory by the press.
Similarly, XRP’s recent negative weighted sentiment improved significantly as it moved closer to the neutral line. All of these conditions could imply an imminent price reversal for XRP.
Nevertheless, XRP development activity also declined sharply. Could the decline in development activity change investor confidence and block price reversal?