- XRP could fall to the mid-levels, which means another ~8% drop.
- The buyers have lost their dominance over the past week.
Ripple [XRP] saw a decline from its seven-month high at $0.71. This move and subsequent rejection happened much as outlined in an AMBCrypto analysis from a week ago.
A look at the on-chain metrics earlier this week suggested accumulation was happening and investors were confident. However, it remains to be seen on the price chart, with the $0.7 level still looming large.
The market structure maintains a bullish bias
Source: XRP/USDT on TradingView
XRP’s daily chart showed that despite the nearly 15% pullback over the past five days, the market structure remained bullish. To change this, a move below $0.525 is needed.
The RSI also remained above the neutral 50, but showed a value of 54 that momentum was neutral.
The OBV was unable to defend a resistance level that appeared to be supported last week. This caused the indicator to fall as selling pressure increased. Together, the indicators indicated that the bulls were struggling.
The $0.624 is a support level on a lower time frame that may not hold. The mid-range $0.585 and the $0.52-$0.54 region were two key demand zones where XRP could see a bullish reaction.
Selling pressure continues to increase in the shorter term
Source: Coinalyse
The Open Interest behind XRP has steadily declined since March 14. In addition to the falling prices, the conclusion was that there is a bearish sentiment. Speculators were unwilling to bet on XRP to reverse the short-term downward trend.
How much is 1, 10 or 100 XRP worth today?
Meanwhile, the CVD spot has moved south since March 5. The lack of demand in the spot markets was something that worried long-term holders.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.