XRP prices back above $0.5, but here’s why that might not last long

Disclaimer: The knowledge introduced doesn’t represent monetary, funding, buying and selling, or different sorts of recommendation and is solely the author’s opinion.

• XRP was in a retracement after the mid-July rally, however the drop under $0.566 meant the short-term downtrend might prolong.
• The Fibonacci retracement and extension ranges had been necessary to grasp the place subsequent the XRP bulls might make a stand.

On 17 August, Thursday, Bitcoin [BTC] fell 12.5% inside a day, reaching $25.1k on Binance. This violent wave of promoting noticed many altcoins holders nuke their holdings in a blind panic. Many property, together with XRP, noticed double-digit share losses on that day.

Learn XRP’s Worth Prediction 2023-24

Restoration was not in sight for the crypto market as issues stand. Sure, BTC was atop a better timeframe assist zone. However for XRP, its downtrend was sturdy and the bulls had been unable to defend the $0.56 stage. It appeared extremely seemingly that additional losses might observe.

The downtrend noticed XRP bears destroy the $0.55 assist zone, can the consumers reclaim it?

Supply: XRP/USDT on TradingView

The 6-hour chart highlighted the $0.55 zone as a former bullish order block from the H12 chart. XRP costs crashed beneath this zone on 17 August, flipping it to a bearish breaker block. The RSI fell to 9.38 on the H6 chart and was at 28.4 at press time. This denoted intense bearish momentum.

The OBV has additionally trended strongly downward over the previous week. The market construction was bearish on each the each day chart and the 6-hour chart. The truth that the 78.6% stage was breached so rapidly steered sellers had the clear higher hand, and extra losses had been seemingly.

Due to this fact, a bounce to the $0.56 stage might happen within the coming days, which might seemingly be adopted by rejection. A good worth hole from $0.516-$0.57 might entice XRP to it as the value is drawn to liquidity, earlier than one other transfer downward.

To the south, the 23.6% extension stage at $0.353 was a assist stage that XRP was more likely to fall to. Nevertheless, this might take a number of weeks to materialize. The $0.5 zone was psychological assist, and it might take some time for the bears to interrupt this space.

The detrimental funding fee climbs again into optimistic territory

Supply: Coinalyze

Through the dive in costs late on 17 August, the Open Curiosity and the spot CVD famous a steep slide southward. The funding fee additionally fluctuated negatively as brief positions dominated the market.

How a lot are 1, 10, or 100 XRP value at the moment?

XRP managed to say the $0.48-$0.5 zone as assist over the previous two days, and the funding fee started to climb towards 0 and has been barely optimistic prior to now two days.

The spot CVD has additionally climbed greater, displaying consumers had been brave sufficient to bid on the asset after the swift losses. The Open Curiosity didn’t leap greater, which confirmed speculators had been much less satisfied than the consumers within the spot market.