Analysis
XRP sellers enjoy the bearish vista as selling wave could force prices lower
Posted:
| Last updated: January 30th, 2024
Journalist
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- The tumble in XRP prices, although swift, did not invalidate a range formation yet.
- Bulls do not have the strength in the market to force a recovery yet.
Bitcoin fell by 6.3% on Wednesday (19 April), and the selling pressure behind the king of crypto echoed across the crypto market.
XRP also posted losses of 12.3% based on Wednesday’s swing points. While a bearish breakout had not yet commenced, traders should be prepared for such a scenario.
Read XRP’s Price Prediction 2023-24
Bitcoin’s inability to hold on to the $30k mark highlighted the strength of the sellers. If BTC fell below $28.6k, $26.5k and $25.2k are the next support levels to watch out for. XRP could see a downtrend as well.
XRP saw a bounce from the range lows but do bulls have strength in the market?
Source: XRP/USDT on TradingView
XRP has traded within a range that extended from $0.528 to $0.48 since 2 April. The wave of selling on 19 April did not see a 4-hour trading session close below the range lows. However, it was likely that the mid-range mark at $0.505 will act as resistance.
The RSI was at 37 and showed bearish momentum. A rejection from neutral 50 on the RSI accompanied by XRP price rejection at $0.5 or $0.515 could see the prices resume their downward trajectory.
The Bollinger bands expanded to show heightened volatility, but the 20 SMA had confluence with the mid-range resistance.
How much are 1, 10, or 100 XRP worth today?
The A/D indicator formed a series of lower highs and lower lows since 12 April, even though XRP rose to $0.53 twice in the past week. This suggested weakened buyers. In the coming days, the $0.48 and $0.45 support levels are the ones to watch out for.
Selling pressure saw a sharp rise and speculators remained bearish
Source: Coinalyze
The spot CVD took a nose dive on 19 April after climbing steadily higher from 17 April. This showed that the XRP bulls had some strength in the market earlier on the lower timeframes but their efforts to force a breakout were in vain.
The Open Interest also declined by close to $100 million within 24 hours, and highlighted that long positions were caught well off-guard. Recovery was a possibility in the near-term, but the evidence did not support the bulls yet.
