Ripple’s XRP experienced a significant 32% drop in its price from April 11th to 13th, marking the most rapid decline of 2024 and pushing prices below the $0.54 demand zone. Despite this dramatic fall, there is still some optimism among bulls as XRP was trading just above a crucial higher timeframe support level at $0.46. Traders and investors may see an opportunity at this level, especially if Bitcoin decides to drop further later in the month, making this a key moment for XRP’s future trajectory.
The market structure for XRP turned bearish when prices dipped below $0.525, leading to selling pressure that pushed it below the swing low at $0.485. However, amidst the chaos, there was a glimmer of hope for buyers. The 8-month range for XRP has its low at $0.46, which has not been revisited since September 2023, making it a potentially attractive buying opportunity from a risk-to-reward perspective. The On-Balance Volume (OBV) also indicated that the selling volume had not yet surpassed the buying volume of recent months, offering further encouragement for bullish sentiment.
Data from Coinalyze pointed to bearish dominance in April, with Open Interest declining from $680 million to $367 million. Despite a negative funding rate in the past 24 hours gradually climbing above 0, the spot Cumulative Volume Delta (CVD) has been on a downward trend over the last week, with recent losses intensifying this trend. The overall market sentiment did not suggest an immediate recovery, with a lack of demand in spot markets adding to investor hesitancy. However, a potential shift in the spot CVD and Open Interest downtrend could signal a positive turnaround for XRP in the near future.