XRP Soars 21% Despite Selling Pressure; Investors Cautioned
The Key Points in Brief
The cryptocurrency XRP has seen a rise of 21% in the last seven days, indicating a bullish trend. However, there are signs of increasing selling pressure. While the technical indicator and market structure could support further gains for XRP, the lower time frames suggest that the bulls may not be strong enough to sustain the upswing.
Technical Analysis of XRP
The technical analysis shows that XRP has broken through the bearish market structure since mid-February and has retested the former bearish order block at $0.52 as support. This was followed by a strong upswing above the resistance zone of $0.6. The RSI shows strong bullish momentum and the OBV has slowly increased over the last month. This buying strength could drive prices further up.
The Challenges for XRP
The challenges for XRP lie in the critical HTF levels. In the last seven days, XRP rose by 21% from $0.5288 to the current market price of $0.642. The resistance region between $0.704 and $0.712 has twice forced the XRP bulls to retreat since last November. An analysis shows that XRP has been forming a range between the levels $0.704 and $0.501 since July 2023. The trend is currently strongly bullish on the 12-hour chart, but could change near the $0.7 mark.
Changes in Demand
While the OBV has increased over the last month, the Spot CVD has decreased over the last five days. This suggests that the rise could be primarily driven by speculative activities. The open interest and funding rate continue to support the idea of a strong bullish sentiment in the market. However, the discrepancy between the CVD and the XRP prices in recent days is concerning.
Our Assessment
Although XRP is showing strong performance, investors should be cautious. The discrepancy between the CVD and the XRP prices could indicate a possible correction. It is important to closely monitor market dynamics and technical indicators to make informed decisions. Remember that cryptocurrency investments always involve some risk.
Sources: Akashnath S, Ann Maria Shibu, Coinalyze, TradingView.
| Symbol | XRP |
| Coin type | Alt Coin |
| Transaction Speed | High |
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