XRP price trend was moderately bullish at the time of writing Lack of demand could slow the altcoin’s path north
The U.S. Securities and Exchange Commission filed its latest appeal on Thursday. The appeal seeks to reverse part of a July 2023 ruling in favor of Ripple and XRP. However, the SEC currently does not dispute the determination that the sale of XRP to retail investors through an exchange is not a sale of securities.
This appeal has a negligible impact on prices. Most of the time, XRP has been trading between $0.52 and $0.62 levels since July. This trend has not changed, and at the time of writing, the token was still in the consolidation phase.
Positive reaction could encourage XRP buyers
Source: XRP/USDT on TradingView
Although XRP’s market structure was technically bullish, the narrow range from $0.52 to $0.62 made this fact less important. The defense at the $0.52 level in October may have triggered swing traders to go long.
Even though XRP is up 8% from its lows, purchase volumes have been weak in October. OBV indicated this observation and stuck to the support level from August. CMF has shown strong selling pressure over the past 20 periods as its calculation takes into account the sharp rejection from the $0.665 level.
The daily RAI was just below neutral 50. Overall, swing traders can go long based on price trends, but we didn’t see strong demand. It is quite possible that other large altcoins will outperform XRP in the coming days and weeks.
Derivatives data did not support the bullish case
Source: Coinglass
Open interest is $772 million, and has remained around this level since July. A price move above $0.62 will likely attract more speculators, as it did in late September.
Source: Coinglass
It will likely take a news event to trigger a true breakout above the $0.62 resistance. In fact, the 3-month lookback liquidation heatmap reveals that the $0.667 level would be the next target in such a scenario.
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Looking at the heatmap for the lower time frame, it appears that the $0.52 and $0.57 levels are near a magnetic field that could reverse the short-term price trend.
Disclaimer: The information presented does not constitute financial, investment, trading, or any other type of advice and is solely the opinion of the author.
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