XRP’s retracement heads to May low – A rebound likely?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- XRP’s pullback inched closer to a key demand zone
- Open Interest rates improved after BTC reclaimed $30k
Ripple [XRP] faced another price rejection at the bearish zone and supply area above $0.5000. The stretch above $0.5000 has been a key price ceiling in the first half of 2023, curtailing any hope of further upside.
Read Ripple’s [XRP] Price Prediction 2023-24
In the meantime, BTC was still facing indecision among speculators as it continues tight, narrow price range above $30k. BTC’s wild gyrations in the past week saw XRP hit the 2023 price ceiling. But a retest on the price floor could also be likely if the fluctuations persist.
Will the retracement grace May low?
The May low falls within the key price zone of $0.407 – $0.434 (cyan). The price zone was a key demand zone in October and Q2 2023. But it was also a key resistance in December and Q1 2023, making it a key price reaction level.
A retracement to the demand zone led to a sharp rally after XRP reclaimed a key low of $0.4493 in May. If the trend repeats and the zone holds, a corrective rebound could set XRP to restest the lower high of $0.527. The level also aligns with a bearish order block (OB) of $0.51- $0.54 (red).
A breach of the demand zone will invalidate the bullish thesis. The next lower supports below the demand zone exist at $0.3472 and $0.3000.
Meanwhile, the RSI was deep in the lower ranges; denoting buyers lost ground to sellers in the past few days. Similarly, the OBV dipped slightly but overall on an uptrend since early 2023.
Open Interest rates improved
From 22 June, XRP prices decreased while Open Interest (OI) rates fluctuated below $440 million. The OI dropped below $400 million on 28 June. Taken together, it shows increasing bearish sentiment in the past few days.
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However, the CVD edged higher only to flat out as of press time. The bearish sentiment still prevails, with OI yet to exceed $400 million.