XRP is trading at $1.39 at the time of writing. It recently broke above $1.40 for the first time in the last three days.
Although not significant, investors were under intense pressure. Data from Glassnode indicates that they have been sitting on $50 billion in unrealized losses since the slip below $1.40. Additionally, 60% of the total supply was red due to the decline.
Aside from spots, exchange-traded funds tied to XRP were also bleeding. With unrealized losses climbing, some investors decided to join the selling frenzy. As a result, US spot ETFs saw a net inflow of $22 million over the last two days of the previous week.
The selling extended into the new week, as netflow was negative $18 million on Monday. It remains to be seen if Tuesday will come out negative.
Nonetheless, since unrealized losses spiked after it dropped below $1.40, it is easy to conclude that reclaiming it will result in significant buybacks.
The altcoin opened the day at $1.36 and peaked at $1.42. Its current price reveals a new problem; the bulls are unable to sustain the upward momentum. XRP has since shed almost half of the previous gains and is struggling to hold $1.39.
If current conditions persist, the altcoin will retrace to its opening price. However, there are indications that the uptick will resume.
A closer look at the 1-day chart shows that, amid significant improvement in volatility, XRP remains locked in a range-bound pattern. It remains in the $1.47-$1.33 channel. The trend has been an almost guaranteed retest of the resistance after bouncing off the support. It rebounded at the mark over the weekend and may be heading for $1.47 if the trend persists.
Will XRP Test $1.50?
Aside from previous price movements, the bollinger bands support predictions of further increases in the coming days. The chart shows that the altcoin recently rebounded off the lower band and may be heading for the upper band.
However, in addition to previous price movement, the indicator also casts doubt about the attempt at $1.50. The upper band is at $1.44, increasing the odds of a trend reversal before the key level.
Additionally, data from Coinglass shows liquidation clusters that may hinder the climb to the highlighted resistance. A closer look at the chart above shows that since Feb 17, the coin has failed to surge above $1.50.
In response to its failure, traders who opened short positions are also seeing liquidation pegged at this key mark. As a result, the bears have defended this mark. Nonetheless, there are other clusters before the barrier that may hinder further uptick.
In a nutshell, the chance of reclaiming $1.50 is very low as the key metrics and data have shown. However, it is not zero. The 1-day chart shows an instance when it broke above $1.50. The event happened on Feb 14 when it opened at $1.40 and reclaimed $1.50.
It surged to $1.67 the next day. A closer look at price movements suggests XRP will retest the resistance under review. If XRP surges above $1.40 and prints a new candle above it, a retest is likely.
Since Feb 5, such a scenario has played out only twice, with one reaching the mark. It remains to be seen if another retest will happen in this week.
