Market Direction

XRP stalls at $0.70 resistance: Correction ahead?

Updated: Jul 25, 2024

Published: Nov 8, 2023

XRP has slammed into a brick wall and faced stiff rejection. With overheated indicators like elevated funding rates and open interest, it appears XRP bit off more than it could chew. Now, a retreat back down to the $0.62 - $0.64 area seems likely – and you know what? It might be another chance to pick up discounted bags.

TLDR

XRP rejected from the key $0.70 resistance area.
There are signs of overheating, like high funding rates and open interest.
Likely to see a more meaningful pullback to $0.62 - $0.64.
Take some risk off the table; wait to re-accumulate lower.

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

Yesterday, we said, “XRP moved into a key resistance at the $0.70 area. Initially, we’ve seen price get rejected from this level, and we now find a battle to get back above and comfortably close above the $0.70 level.”

Today, that battle continues.

The RSI is overbought and very overbought on the 3D timeframe, so we feel there will be a pullback in the coming weeks. Again, it is still possible that this goes higher in the short term. The key battle is, of course, this $0.70; if XRP can break above it, then it’s possible we can push onto $0.84.

The major support remains between $0.62 and $0.64; XRP must hold this level in the short and medium term. This would represent good dip buys.

XRP 1D

Market mechanics

The funding rate for XRP remains very positive, indicating a bias to be long, while the open interest is also very high. This looks overheated to us here. We’d be cautious, especially with price rejecting into $0.70 so far.

Cryptonary’s take

“For XRP, we’d be very cautious here. Price has moved into a major resistance at $0.70 and has initially rejected from this level. Alongside this, we’ve seen leverage significantly increase with Longs ape’ing in. This is not a healthy setup, and we’d expect a more meaningful pullback here, with a price target of $0.62 to $0.64.”

The above was yesterday’s conclusion, and it is still very valid today. We’d look to take some risk off the table and re-accumulate from $0.62 to $0.64.