The XRP (XRP) The daily chart was registered with the lowest candle near 99 days on March 10. Altcoin dropped below the $ 2 support level but registered a short-term recovery of 12% on March 11.
XRP 1-hour chart. Source: Cointelegraph/TradingView
In high time frame (HTF) charts, XRP should hold its psychological level at $ 2, but other metrics suggest that a deeper drawdown is possible.
XRP markets lack consumers as futures flip bearish
The XRP price currently decreases by 37.1% from all times high $ 3.40. When prices were sinking a similar percentage in Feb. 3, market bids quickly absorb pressure sale, pushing the XRP above $ 2.50.
The area of XRP and eternal data combined -sa. Source: aggrad.trade
However, the XRP area and eternal markets were relatively bearish in the last week. Data from Aggrad.trade suggests that the XRP area of the combined -with the volume of the delta (CVD) dropped 50% in March.
A negative CVD means there is more sale of quantity than purchase. The current value of the CVD is -$ 408 million, which signals demand, with the control of the seller.
Also, futures entrepreneurs also become bearish, with continuous CVD collapse at -1.18 billion on March 11. The open interest of the XRP funding rate has been significantly negative, indicating that more short positions have been added in recent days.
XRP funding chart. Source: Coinglass
XRP Whales continues to sell spree
XRP’s volume bubble map showed a climbing activity until the end of February. Ki-baby Ju, founder of cryptoquant, noticed That this uptick is aligned with an ongoing distribution stage for XRP.
Distribution refers to a period in the market cycle when large investors are slowly offloading their positions to secure the gains, usually happening near the climax of an upward trend.
Related: Why is XRP price declining today?
Current data stated that the distribution phase has intensified over the past seven days. Specifically, whale outflows, measured as a 30-day transfer of average, continue to rise.
This increase suggests that large holders continue to upload their positions to XRP, further driving to the distribution trend.
XRP Total whale flow. Source: cryptoquant
Between March 4 and March 10, these big holders XRP Failed Excessive $ 838 million in positions. This significant sale-off reflects the ongoing bearish trend for XRP.
XRP price H&S pattern of clues to $ 1.60 retest
On March 11, the 1-day XRP chart closed below $ 2.05, which was the critical line of the neckline of the daily head-and-shoulders pattern. This pattern has potentially strong bearish consequences when observed in a high time frame (HTF) chart.
XRP 1-Day Chart. Source: Cointelegraph/TradingView
Lower prices are likely if XRP failed to recover $ 2.05 as support, as described in the chart above.
The immediate target zone for XRP price remains between 0.5 and 0.618 fibonacci retracement line. Also known as the “Golden Zone,” the Retest Range lies between $ 1.90 and $ 1.60. The possibility of rehesting of 0.618 Fibonacci or $ 1.60 is high in the current bearish environment.
Failure to handle this range can lead to a retist of the long -term demand zone between $ 1.58 and $ 1.27.
This article does not contain investment advice or recommendations. Every transfer of investment and trading involves risk, and readers should conduct their own research when deciding.
