XRP heads toward key demand zone, a rebound seems…
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Bearish structure kept XRP stuck under key resistance level.
- Surging demand on Spot CVD suggested price reversal could be imminent.
Ripple’s [XRP] price movement has been the opposite of the general market movements. While most of the market has been bullish, XRP has remained largely bearish.
Realistic or not, here’s XRP’s market cap in BTC’s terms
A 6% drop on 30 June took it close to a key support level before eased selling pressure saw it trade at $0.4712, as of press time.
XRP’s potential for a rebound hasn’t been helped by Bitcoin’s [BTC] bullish momentum easing off in the past 24 hours, due to regulatory concerns about the Bitcoin ETF applications.
Bearish structure keeps XRP under for now
The bearish OB (order block) at the $0.5200 to $0.5400 range has served as a major hurdle for any bullish advancement. Price has been rejected four times at the bearish OB in June and the latest pullback took XRP below the $0.4940 level.
The price action on the 12-hour timeframe has seen XRP inch closer to the $0.4451 support level. It is critical to note that this support level lies just above a critical price reaction zone ($0.4100 – $0.4400) which has served as a key base for bullish advances in March and May 2023.
The likelihood of a price rebound happening from the price level highlighted is significant, due to the overall market sentiment.
On-chart indicators revealed differing opinions. The Relative Strength Indicator (RSI) showed increasing momentum for the downward move as it remained below the neutral 50 and moved closer to the oversold zone.
On the flip side, the Chaikin Money Flow saw increased capital inflows and stood at +0.15. This suggested that bulls could be preparing for a significant reversal if price gets to the $0.4100 – $0.4400 level.
In the meantime, sellers can take advantage of the bearish momentum to ride price down with take profit levels at the $0.4451 support level. However, a bullish session close on the 12-hour timeframe would invalidate this bearish thesis and usher in an early start to the corrective bullish rebound.
Spot CVD’s strong uptrend showed huge demand behind XRP
Read Ripple’s [XRP] Price Prediction 2023-24
Data from Coinalyze pointed toward an imminent reversal for XRP. The spot CVD has risen rapidly between 15 May and 30 June. This led to a brief break of the bearish market structure on the higher timeframes before selling pressure flipped the structure bearish once again.
With the spot CVD retaining the uptrend, this was an indication that a breakout move for bulls could materialize soon. The Funding Rate also stayed positive since 19 June, denoting strong bullish sentiment amongst speculators.