XRP could see a bullish move to fill an inefficiency overhead, here’s why

Disclaimer: The information presented does not constitute financial, investment, trading or other types of advice and is solely the opinion of the author

  • The market structure and momentum was strongly bearish for XRP.
  • A move above $0.365 could indicate bullish intent.

The price overviews of Ripple [XRP] on the lower time frames then straight ahead. The price reached an area of ​​significant support and the bulls have defended the level well so far. However, it was a weekend and volatility was low.

Read Ripples [XRP] Price prediction 2023-24

However, December 19 may shed more light on the momentum for XRP and the broader crypto market for next week. The direction of the S&P 500 has been bearish recently. A continuation of the same could see selling pressure increase behind Bitcoin [BTC] and XRP once more.

XRP finds support at $0.35 and presents the likelihood of an upward move

Source: XRP/USDT on TradingView

The market structure was strongly bearish on the two-hour chart. At press time, the asset was trading within an H4 bullish order block. This order block was formed on November 21st, and later that week a move up the market structure broke and turned it in favor of bulls. This highlighted the bounded zone as a bullish order block.

The move that followed saw XRP rise to $0.41, but no further. Last week’s selling pressure saw prices retest $0.398 as resistance and decline. The $0.37 support level did not hold, but the $0.35 zone has been well defended. Therefore, aggressive buyers may look to buy XRP within this order block, with a stop-loss set below the $0.345 support.

It is possible that December 19 is likely to dictate the momentum for next week. If the sellers find strength and force prices below the bullish OB, a retest of the same zone will offer selling opportunities. However, if XRP can climb to $0.365 and reverse the structure in favor of the bulls, a short-term trend reversal will be signaled.

When XRP fell sharply on December 16, it left an ineffectiveness on one-hour charts. Bounded by the white box, this FVG would be on the bull’s agenda for the coming week. If $0.37 was recovered as support, another buying opportunity would be available.

Open Interest saw a small increase, but far more fuel would be needed to light the bullish flames

XRP could see a bullish move to fill an inefficiency overhead, here's why

Source: Coinalyze

Over the weekend, the price fell to the support zone, and OI finally stopped the descent. It has not established an uptrend yet, indicating that futures traders were not enthusiastic about the price action yet.

Once again, December 19 may provide clarity for futures traders. A slow pullback above the $0.365 mark, if accompanied by a rise in OI, would indicate that bulls had found strength. Meanwhile, a flat OI and rising prices could indicate that $0.35 would serve as resistance and see a rejection instead.

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