- XRP broke past a descending trendline resistance, but ended up forming a range
- Drop below the mid-range level might be halted for now
XRP saw a hike in Open Interest, climbing up to nearly $5 billion as the SEC formally initiated a review of the WisdomTree XRP Trust. Even if the review didn’t confirm approval, it did show that the SEC has given the topic serious focus. As expected, this has buoyed speculation around XRP.
In fact, technical analysis showed that the altcoin approached a low from early May, something that could yield a bullish price reaction. However, the indicators were bearish at press time, as was Bitcoin’s [BTC] short-term momentum.
XRP selling pressure beginning to intensify
Source: XRP/USDT on TradingView
In the second week of April, it appeared that XRP had initiated a recovery after a strong price drop. This came after the reclamation of the descending trendline (white). However, the price action in recent weeks showed that a range formation was the more likely answer, and not a bullish recovery.
The mid-range level of the range plotted (purple) was at $2.27. This level has been respected since March, heavily reinforcing the idea of a range formation. Additionally, XRP faced rejection in mid-May at its March highs.
This was the range high at $2.6. At press time, the price was below the mid-range level once again, having tested the early May low at $2.08. The CMF was at -0.07, showing heavy capital flows out of the market. The DMI also underlined that a bearish trend was building up, and the OBV was sliding lower.
Source: Coinglass
The technical findings highlighted noticeable selling pressure behind the recent losses. The 1-month liquidation heatmap revealed that sizeable magnetic zones have been swept up in recent days. One cluster of liquidity was left, at the $2.05 region.
Hence, it seemed likely that this zone would be revisited, especially if the selling pressure does not ease soon. Traders can brace for a move towards $2-$2.05.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
Credit: Source link