Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- XRP’s price action struggled to move above $0.53 since 22 August.
- Open Interest rates stagnated as neither buyers nor sellers had leverage.
A narrow price consolidation for Ripple [XRP] into the weekend could be on the cards. The spot market, particularly the 4-hour chart, leaned towards sellers, but the futures market was bearish in the short term.
Read Ripple’s [XRP] Price Prediction 2023-24
In the meantime, Bitcoin [BTC] struggled to stop sellers from cracking the $26.0 mark. If sellers crack and drive lower, bears could overwhelm the overall market over the weekend (26/27 August).
A slump, consolidation, or pump for XRP?
Source: XRP/USDT on TradingView
A Fibonacci retracement tool (yellow) was placed between the August high ($0.708) and low ($0.423). Based on the tool, the 23.6% Fib level aligned with a weekly bullish order block (OB) of $0.458 – $0.494 (cyan).
The mid-August price slump eased at the confluence of the weekly OB and the 23.6% Fib level. So, the area is a solid bullish zone.
At the time of writing, XRP’s price action dropped after facing price rejection at $0.53 (38.2% Fib level). Notably, the 50-EMA (Exponential Moving Average) was flipped to resistance, and another retest at the level could set XRP lower to the confluence area.
Therefore, the confluence area of $0.458 – $0.494 would be an ideal buying level for short-term bulls if BTC doesn’t record more losses over the weekend. In such a scenario, the immediate target would be the 50-EMA and the 38.2% Fib level.
The RSI faced rejection at the 50-median mark, while the CMF fluctuated near the zero mark. The readings demonstrated weak buying pressure and muted capital inflows.
Open Interest rates stagnated
Source: Coinalyze
XRP saw a positive price reaction after hitting the mentioned confluence area on 18 August. Bulls gained market control after the retest, as illustrated by the rising CVD (Cumulative Volume Delta).
How much are 1,10,100 XRPs worth today?
But the CVD plateaued at the time of writing, suggesting neither sellers nor buyers had absolute market control.
Besides, the Open Interest (OI) rates remained unchanged during the recent bounce. The OI has fluctuated above $330 million since 18 August, illustrating a stagnant demand for XRP over the same period. It reinforces a likely consolidation ($0.49 – $0.53) over the weekend.