What XRP bulls need to know before making the next move
The past seven days saw XRP rally 21%, but one indicator showed rising sell pressure.
- The divergence on the spot CVD was a spot of concern.
- The momentum and sentiment were in bullish favor.
Ripple [XRP] was trending higher over the past ten days as the euphoria of a Bitcoin [BTC] all-time high seized the market. Yet, the higher timeframe analysis showed XRP could face significant obstacles overhead.
As things stand, the technical indicators and the market structure supported the idea of more gains for XRP. Yet, the lower timeframes showed the bulls might not be strong enough to sustain the rally.
The challenges ahead were critical HTF levels
The 12-hour chart showed XRP broke the bearish market structure in mid-February and retested the $0.52 former bearish order block as support. It followed this retracement with a strong rally past the $0.6 resistance zone.
The RSI noted strong bullish momentum, and the OBV has slowly trended higher over the past month. This buyer strength trend could drive prices higher.
The past seven days saw XRP rally 21% from $0.5288 to the current market price of $0.642. The $0.704-$0.712 resistance region had forced XRP bulls to retrace twice since last November.
Zooming out on the chart, AMBCrypto noted that XRP has formed a range between the $0.704 and $0.501 levels since July 2023. The trend was strongly bullish on the 12-hour chart now, but this could change near the $0.7 mark.
Lower timeframe demand was falling
While the OBV has trended higher over the past month, the spot CVD has crept lower over the past five days.
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The lack of spot demand even as prices appreciated rapidly suggested that the rally could be driven mostly by speculative activity.
The Open Interest and the funding rate continued to support the idea of strong bullish sentiment in the market. However, the incongruence between the CVD and prices of XRP in recent days was a concern.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
