Market Direction

Bulls and bears at odds after XRP’s uptrend breakdown

Updated: Jul 25, 2024

Published: Nov 15, 2023

XRP bulls are attempting to regain their footing after a harsh pullback. While XRP has lost its uptrend, the key support between $0.62-0.64 has so far held firm. With funding rates and open interest normalising, XRP is primed for a rebound if it can reclaim the broken uptrend. The key question is whether it will reclaim it as bulls and bears wrestle for control.

TLDR

XRP pulled back but held key support between $0.62-0.64
The uptrend is broken, which raises risks of deeper pullback.
Funding rates and open interest have normalised to healthier levels
Mechanics align for a bounce if XRP can reclaim the uptrend.

Disclaimer: Not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results. “One Glance” by Cryptonary sometimes uses the RR trading tool to help you quickly understand our analysis. They are not signals, and they are not financial advice.

Technical analysis

Like several coins, XRP pulled back significantly yesterday but was able to reclaim its major support and close above this level. The major support for XRP we previously identified was $0.62 to $0.64. The worry is that the uptrend has been broken, which may see a deeper pullback for XRP, particularly if the market pulls back.

In the short term, XRP will need to reclaim the uptrend line to continue its bullish momentum, which could then take XRP back to $0.70.

The RSI on the daily is relatively positive as it has pulled back substantially and is now down at 56. The 3D and weekly timeframes have also pulled back substantially. So overall, this is positive, but the technicals on the chart are less so.

XRP 1D

Market mechanics

The funding rate for XRP is back to more healthy/neutral levels, now at 0.0128, having been at 0.0280 yesterday.

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This is much better in terms of open interest than the past few days. Just days ago, open interest was at $868m, now at $635m. This is a flush out of excess leverage and longs that piled in.

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From a mechanics point of view, this is a far healthier setup, and it should encourage price to bounce from here.

Cryptonary’s take

When weighing up the above, the technicals are letting XRP down here. If we can see a reclaim of the uptrend line, then mechanics-wise, XRP is set up to push higher, possibly retesting the $0.70 horizontal resistance again.

We’re currently not taking any action on XRP.