As a seasoned crypto investor, I’ve seen my fair share of market corrections and bearish trends. The recent bloodbath we’ve witnessed this week has undoubtedly raised concerns about the future of the cryptocurrency market, with the total market cap currently standing at $2.4 trillion.
Analyzing XRP Amidst Market Uncertainty: With a Total Market Cap of $2.4 Trillion, the Future Looks Murky
Despite the significant correction, this setback might present fresh possibilities for investors who previously missed out on purchasing XRP and other altcoins during the Q1 rally.
After experiencing a decline of 7%, XRP‘s price remained stable at approximately $0.4518 on Thursdays. According to CoinGecko, there was an additional decrease of around 3.4% over the last week, which resulted in a reduced market capitalization of roughly $25 billion.
The bearish condition is evident in XRP‘s price action, which has caused it to plummet by nearly 40% from its March peak of $0.75. If bulls are unable to hold the current support at $0.45, the downtrend could continue, potentially reaching $0.4 by July, before a potential trend reversal occurs.
XRP Price Analysis: Can XRP Defy Gravity?
The RSI’s hold on the oversold zone is becoming stronger, indicating that bears maintain control. This dominance is further highlighted by the bearish divergence between price and RSI.
Reaching a price of $0.45 could disrupt the bulls’ strategy and cause confusion. The bearish indicators that emerged in May, such as the death cross, make it challenging for the bulls to regain control.
The MACD sell signal, indicated by the divergence between the moving averages, supports the downtrend of XRP. Additionally, the red histograms add evidence to this bearish outlook, suggesting that XRP is still deeply entrenched in the bear market.
As an analyst, I’ve noticed that the sentiment in the derivatives market has taken a turn for the worse. The open interest, which had been steadily climbing up to $992 million in April, has now dropped significantly to $535 million. Normally, a consistent increase in open interest supports the long-term bullish trend of an asset. However, the recent decrease indicates a shift in market sentiment that is less optimistic about the asset’s future price movement.
As a crypto investor, I can tell you that the Binance exchange, which is widely known for hosting the majority of XRP futures trading, significantly influenced the recent downturn in the market. Specifically, it accounted for approximately $162 million of the current open interest (OI).
As a researcher studying the derivative market, I’ve observed that traders endured significant losses when the price retreated to $0.45. The ensuing market turbulence led to substantial liquidations. Specifically, long positions faced approximately $3.24 million in forced selling over a 24-hour period. In contrast, shorts only experienced minor liquidations to the tune of around $41,000 during this timeframe.
Can XRP Recover Above $0.5?
A comeback for XRP is plausible, yet hinges on several influences. One such factor is whether the support at $0.45 can remain robust. Concurrently, traders must display resilience against bearish predictions and initiate purchases of XRP above $0.45 in anticipation of a swift recovery surpassing $0.5 by the week’s end.
Despite the RSI on the daily chart not being in the oversold territory, it sits near the lower boundary of the neutral zone. Given this circumstance, some investors may consider buying XRP with the intention of potentially earning greater returns in the future.
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2024-07-04 16:14