Are XRP holders surrendering to bearish pressure
- XRP has a bearish market structure on the daily chart.
- The 78.6% Fib retracement level could be important in the coming days.
Ripple [XRP] saw an attempted hack on Bitfinex but it was unsuccessful. Even so, the sentiment in the market was fearful. Activity on the XRP Ledger reached an all-time high in monthly transaction volume.
The on-chain metrics did not look pretty. The weighted sentiment and number of daily unique addresses have dropped. The network activity was also trending downward.
The price action showed a bearish trend
The market structure of XRP agreed with the findings from the on-chain metrics. The structure and momentum were bearish, and the OBV showed that January saw heightened selling pressure.
The uptrend lost strength in November, and the bears have been in control since.
The fair value gap (white box) was tested on 11th January and saw a rejection. The price closed at $0.568 on 6th January, flipping the structure bearishly. Together, they point toward a strong downtrend.
At press time, the 78.6% Fibonacci retracement level continued to be defended. Yet, the lack of inflows from buyers was evident on the OBV. This signaled that further losses were likely. To the south, the $0.473 and $0.461 support levels are likely to be tested in the coming weeks.
The recent rejection came alongside a strong bearish sentiment
The Open Interest slowly climbed higher from the 13th of January to the 18th. But the price of XRP began to drop after the 16th, from $0.583 to $0.545 on the 18th. This rise in OI alongside falling prices showed short-selling activity.
How much are 1, 10, or 100 XRP worth today?
The spot CVD has also been in a firm descent in recent weeks. It pointed toward steady selling pressure in the spot markets.
Overall, it appeared likely that XRP was set to fall toward the $0.5 mark or lower.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.