Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- The 1 day and 1 hour price charts showed that XRP bulls were dominant.
- A dip to the $0.78 demand zone is likely to result in a higher rally.
Ripple [XRP] was one of the most notable performers in the crypto market in July. In the Ripple lawsuit, the judge ruled that XRP was not a security, leading to a remarkable rally on July 13.
Realistic or not, here is the market cap of XRP in terms of BTC
The higher time frame price chart favored the bulls. Further gains towards the $1.04 or higher level were possible, although there was a possibility of a deep pullback. Still, buyers managed to push prices above $0.8 over the past week. Can traders expect more upside?
XRP’s short-term momentum has shown signs of weakening
Source: XRP/USDT on TradingView
The market structure has been bullish since June 17, when XRP traded at USD 0.715. Since then, buyers have driven up prices and started an upward trend in shorter time frames. The 1-hour chart showed that there were two regions where XRP can find demand.
The first was the $0.82 support level that had served as resistance on July 13. This level was briefly flipped to support in the last few hours, but it seemed like the bears could push back the bulls a bit. The next support zone was the bullish order block at $0.0782, highlighted in red. It has confluence with the 55 period SMA and a move below this area would turn the structure bearish.
The OBV did not see a sharp dip even though XRP was poised to drop below USD 0.82. The RSI stood at 51, showing that bullish momentum was fading.
Buying pressure remained significant due to the rising spot CVD
Source: Coin analysis
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As XRP prices crept higher over the past two days, so did Open Interest. The OI climbed from $700 million to $995 million, showing strong bullish conviction. The positive slope of the spot CVD also emphasized that buyers were dominant.
The OI and CVD showed bullish sentiment, but the RSI weakened. The price dropped to the $0.782 support zone where it is expected to bounce higher. Invalidating this idea would be a drop below the $0.768 level.