0
0
XRP, the native cryptocurrency of the Ripple ecosystem, is down by less than 1% over the last 24 hours, recovering from a significant drop on Tuesday.
The dump saw XRP retest the $1.85, but it is now trading at $1.91 per coin.
However, market sentiment remains poor, and XRP could record further losses in the near term.
XRP lost its fourth position in the market to Binance’s BNB coin after underperforming in recent days.
The bearish performance comes amid low retail interest in the cryptocurrency.
Data obtained from CoinGlass shows that XRP’s futures Open Interest (OI) stands at $3.71 billion, down from $3.72 billion the previous day.
Demand for XRP derivatives has been relatively low since the October 10 crash, which resulted in over $610 million in long positions being liquidated, while short traders also lost approximately $90 million.
The OI on July 22, when XRP hit its recent high, was $10.94 billion, indicating that the OI has dropped by nearly 70% over the past six months.
This suggests that investors have lost faith in XRP’s ability to maintain an uptrend.
For XRP to rally and stay above the $2.0 psychological level in the near term, a sustained recovery in XRP’s OI will be crucial.
However, despite the poor retail interest, spot Exchange Traded Funds (ETFs) listed in the United States (US) have extended their inflow streak to 21 consecutive days.
Thanks to the accumulation, the cumulative inflow volume has reached $1 billion, boosting net assets to $1.12 billion. This shows that institutions are showing interest in XRP.
The XRP/USD 4-hour chart is bearish and inefficient, with the inefficiency caused by the October deleveraging event.
Since then, XRP has failed to rally to the $2.7 level to gain efficiency.
The cryptocurrency lost 7.5% of its value in the last seven days, making it the second consecutive week of losses.
At press time, XRP hovers around $1.91.
The technical indicators remain bearish, suggesting further downward movement.
The Moving Average Convergence Divergence (MACD) indicator sits below the zero line on the 4-hour chart, indicating that traders should reduce their exposure to the market.
The Relative Strength Index (RSI) at 34 is below the midline and consistent with lingering downside pressure.
If the bearish trend continues, XRP could retest the $1.77 support level over the next few hours or days.
The next major support level stands around the $1.45 region.
However, if the bulls regain control of the market, XRP could recapture the $2.0 psychological level before rallying to $2.35.
The post XRP could dip to the $1.77 low as market remains bearish: check forecast appeared first on Invezz
0
0
Manage all your crypto, NFT and DeFi from one placeSecurely connect the portfolio you’re using to start.
