On XRP: This isn’t the time for fresh buys or longs

Is it time for XRP to take a breather?

TLDR

• XRP is facing a significant challenge at the $0.70 horizontal resistance.
• If XRP experiences a meaningful rejection, the next support lies between $0.62 to $0.64.
• High funding rates and open interest indicate an unhealthy mechanics setup for XRP.
• We advise caution on XRP, especially if the broader market experiences a pullback.

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

XRP continues to struggle at the horizontal resistance of $0.70 and is in overbought territory on the daily and the 3D timeframe. 

If XRP has a more meaningful rejection, the next support is between $0.62 and $0.64. BTC needs to continue or at least hold higher levels for XRP to continue higher. 

XRP 1D

Market mechanics

Despite XRP’s funding rate decreasing substantially, it remains high at 0.0228% OI-Weighted. Alongside this, the open interest is very high, indicating a lot of longs ape’ing in here. In terms of mechanics, this is one of the least healthy setups we’re seeing currently.  

Cryptonary’s take

For XRP, we remain very cautious here. It’s butting into a major horizontal resistance at $0.70 while having an unhealthy mechanics setup. BTC and the rest of the market are reaching euphoric levels locally, and XRP hasn’t surpassed $0.70.

 Generally speaking, we think XRP will pull back to at least $0.62 - $0.64 if there is a pullback in the market. This isn’t the time to be opening fresh buys/longs.