Ripple’s XRP recently experienced a significant crash of 12.12% after failing to break the Break of Structure (BOS) level at $2.40. This led to a drop in Open Interest by 16%, indicating that bulls were exiting the market with $38.33 million in liquidations, primarily from long positions.
Following the rejection at the $2.40 level, XRP plummeted to $1.69 as sellers gained control. The market turned bearish after the price crossed below the Equal Lows (EQL), confirming a Change of Character (ChoCh). The crucial support level at $1.60 became the next target, with potential further decline to $1.45 if the $1.60 barrier is breached.
A brief recovery saw XRP rise to $1.85, supported by stable conditions at $1.60 and increased buying activity. However, ongoing rejection at the $2.00 level poses a challenge for sustained gains. Without fresh triggers, the market structure remains bearish, with a potential drop below $1.60 looming unless buyers regain control.
Key indicators like Whales, MACD, and RSI continue to show bearish signals, with the 12-hour chart confirming the decline below $2.00 support. The RSI approaching oversold levels and a strong bearish signal from MACD further indicate the potential for further downside, possibly to $1.60 or lower if the $1.85 level does not hold.
Large Ripple holders have shown bearish sentiment with a significant transfer of XRP tokens for selling, leading to weakening market confidence. The $1.00 psychological support level and the universally accepted $0.67 support could come into play if XRP falls below $1.60. Maintaining steady growth above $2.10 is essential to challenge the negative market sentiment.
In the derivatives market, XRP saw a decline in Open Interest by 16%, signaling a shift in trader sentiment towards bearish interests. Derivatives liquidations totaling $38.33 million, with a majority coming from long positions, further exacerbated bearish forces in both futures and spot markets. The decline in product search interest and internet traffic also indicates waning customer attention on XRP, complicating the generation of positive momentum for a market rebound.
Overall, Ripple’s XRP faces significant challenges ahead with a bearish market structure and weakening investor confidence. Maintaining key support levels and generating positive momentum are crucial for any potential recovery. The decline in derivatives and product search interest further compound the current market weakness, signaling potential further downside unless significant changes occur in market dynamics.
