XRP Climbs Above Support as Bulls Try to Reclaim Crucial Zone 

Ripple (XRP) is showing strong signs of a bullish outlook based on the 4-hour chart. In recent times, XRP has been hovering around $0.58 and $0.62. This sideways movement has left market players wondering if the token is ready for a run-up or if it would trend downward.

XRP’s potential for a price increase can be detected from the Awesome Oscillator (AO) stance. At press time, the AO was 0.0047. Positive values of the AO suggest increasing upward momentum.

However, that was not the only observation. As of November 28, the AO was -0.0147. With increasing buyer presence, the indicator formed a bullish twin peak as it moved into positive territory.

XRP Exits the Overbought State

If buying pressure continues to dominate as it has done since support formed at $0.60, then XRP may flip $0.62 and possibly head in the $0.70 direction. Coin Edition also looked at the Know Sure Thing (KST) indicator.

On November 25, the KST reached an overbought level. But sell-offs around that period till November 27 ensured that the indicator had a downward crossover. Although the KST was still in the native region, it showed signs that it could soon crossover to the green area.

XRP/USD 4-Hour Chart (Source: TradingView)

Tight Trading Still Exists

If the indicator hits the neutral point, then it could be an entry for traders looking to long XRP. Furthermore, XRP has also been involved in some notable transactions lately. Recently, Coin Edition reported how Ripple locked 1 billion XRP tokens in escrow.

Details from the transactions showed that Ripple was able to lock the tokens after making three different transactions—200 million, 300 million, and 500 million.

The act is something Ripple does monthly to balance the demand and supply mechanism of XRP. Meanwhile, demand for XRP has been increasing, as indicated by the Accumulation/Distribution (A/D) line.

As of this writing, the A/D was 3.55 billion, reflecting how there have been more buy orders placed for XRP than the sell side. Should accumulation take distribution out of the way, XRP could be in line to start December with a bang by possibly moving towards $0.70.

XRP/USD 4-Hour Chart (Source: TradingView)

However, the Bollinger Bands (BB) showed that XRP’s volatility had become low. This contraction by the bands indicates that the price fluctuation may not be wide. So, if XRP tries to hit $0.70, it might be difficult to rise above the zone in the short term.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

Source