Key Takeaways
Why is XRP rallying?
On-chain metrics and the launch of XRP spot ETFs stirred short-term bullish sentiment and drove gains.
Is this a bullish reversal?
Not yet. A move beyond $2.55 is necessary to flip the trend bullishly. The OBV volume indicator showed that buyers were weak.
The new SEC-approved Cboe rule has enabled institutions to expand their crypto ETFs to hold a broader basket of digital assets. One such institution was Franklin Templeton.
AMBCrypto reported that the well-known asset manager wanted to add Ripple [XRP] to their portfolio to widen the scope of the Franklin Crypto Index ETF.
The investment company has also launched its own spot XRP product, XRPZ trust. This news sent XRP prices flying higher on Monday, the 24th of November.
The $2.05-$2.15 region had been a short-term resistance zone, but was now being retested as a demand zone.
The higher timeframe structure of XRP remained bearish despite the short-term bullishness. Falling exchange reserves and prevalent short-selling meant that a short-squeeze was possible. How high can this rally go?
These gains are not enough for XRP bulls to celebrate
Source: XRP/USDT on TradingView
The 1-day chart showed a large imbalance (white box) left behind during the 10/10 crash. In the weeks since then, this region acted as an effective resistance.
The downturn in November, and especially after the 11th of November, saw heavy selling volume.
This was enough to force the XRP price to make a new swing low and keep its downtrend going. As things stand, the daily timeframe structure remains bearish.
Source: XRP/USDT on TradingView
On the 4-hour chart, the internal structure was bullish. The most recent lower high, set at $2.15 on the 20th of November, has been breached. Yet, the OBV has not climbed past the recent lower high. This was a sign of weak buying volume on the way higher.
In the past three months, this is not the first time XRP has breached a local lower high on the 4-hour chart. These moves tended to reach the region that launched an impulse move.
An example is the rally to $2.55 on the 10th of November. This level was a high from earlier in the month. Once retested, it saw the next downward impulse move begin, which ended recently.
Therefore, XRP bulls should remain cautious. A rally to $2.4-$2.5 is possible, but might have the same result again.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
Source: https://ambcrypto.com/xrp-price-prediction-can-etf-hype-push-it-past-key-danger-zone/
