Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- The bearish structure held XRP below the main resistance level.
- Rising demand on Spot CVD suggested price reversal could be imminent.
Ripples [XRP] price movements were the opposite of the general market movements. While most of the market was bullish, XRP remained bearish for the most part.
Realistic or not, here is the market cap of XRP in terms of BTC
A 6% decline on June 30 brought it close to a key support level before selling pressure eased, leaving it trading at $0.4712, as of going to press.
XRP’s potential for a rebound has not been helped by Bitcoin’s [BTC] bullish momentum has waned over the past 24 hours due to regulatory concerns over Bitcoin ETF filings.
The bearish structure is keeping XRP below par for now
Source: XRP/USDT in trade view
The bearish OB (order block) in the $0.5200 to $0.5400 range has been a major hurdle to any bullish progress. The price has rejected four times from the bearish OB in June and the latest pullback took XRP below the $0.4940 level.
The price action on the 12-hour time frame has moved XRP closer to the $0.4451 support level. It is critical to note that this support level is just above a critical price reaction zone ($0.4100 – $0.4400) that has served as a key foundation for bullish advances in March and May 2023.
The likelihood of a price recovery from the marked price level is significant due to the overall market sentiment.
Indicators on the map revealed different 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 other hand, 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 the price reaches the $0.4100 – $0.4400 level.
In the meantime, sellers can take advantage of the bearish momentum to lower the price with profit levels at the $0.4451 support level. However, a bullish session close to the 12-hour time frame would invalidate this bearish thesis and herald an early start of the corrective bullish rebound.
Spot CVD’s strong uptrend showed huge demand for XRP
Source: Coin analysis
Read Ripples [XRP] Price Forecast 2023-24
Dates from Coin analysis pointed to an impending turnaround for XRP. The spot CVD rose rapidly between May 15 and June 30. This led to a brief break in the bearish market structure on the higher time frames before selling pressure turned the structure bearish again.
With the spot CVD holding the uptrend, it was an indication that a bull breakout could happen soon. The Funding Rate has also remained positive since June 19, indicating strong optimistic sentiment among speculators.
