When Can XRP Price Bounces Turn Into Rallies? One Level Holds the Answer
XRP bounces are failing to become rallies because the On-Balance Volume indicator is hitting a resistance trendline and selling pressure remains high.Summary
XRP price has recently experienced several sharp bounces of 15% to 20%, but these moves consistently fade before turning into sustained rallies. Analysis of the On-Balance Volume (OBV) indicator shows that XRP reacts every time the OBV hits a downward trendline of lower highs formed since October 14th; a breakout above this OBV line is necessary for momentum to sustain.
Furthermore, selling pressure is limiting upside, as exchange outflows—which typically support price—have significantly decreased, meaning more XRP is sitting on exchanges ready to be sold. The critical level determining if the current bounce can become a rally is a supply wall identified on the cost-basis heatmap between $2.52 and $2.54, backed by 1.53 billion XRP.
XRP needs a clean daily close above $2.56 to clear this supply block and confirm buyer absorption of selling pressure. If this occurs while the OBV breaks its trendline, the next target is $2.69. The setup is invalidated if XRP closes below $2.21, which would expose the $2.06 level.
(Source：BeInCrypto)