Xrpusd bullish divergence: Price vs cumulative volume

Xrpusd bullish divergence: Price vs cumulative volume

Using percent scales zeroed at 12 March’s closing price and cumulative volume total, we see that, on 17 August, both price and demand (increase in cumulative volume ) had increased. However, as of 13 October, price had decreased whereas demand had increased. In effect, we see a shrinking supply and growing demand.

For convergence, the volume line should increase as price increases and decrease as price decreases. However, since 17 Aug, price and volume have diverged, that is price decreased as cumulative volume increased. This divergence serves as a probable bullish indicator because it means, despite the price decrease, more buyers continue to accept an ask prices than sellers accept a bid price.

Published at Sat, 17 Oct 2020 19:30:46 +0000

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