Is the XRP price to block again?

The XRP (XRP) price has recovered from its minimum of $ 1.89 reached on March 11, but is still quoted below a key resistance zone. Will the price of XRP maintain recovery or fall more in the next few days?

XRP financing rates show a bearish feeling

One of the clearest signals that there are more problems for XRP is the presence of negative financing rates and decreased open interest (OI) in its futures markets.

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Key points:

• Financing rates are periodic payments among long and short merchants in perpetual futures contracts to keep prices aligned with the spot market.

• When this metric becomes negative, it means that short vendors are paying long, indicating that the bearish feeling dominates.

• XRP financing rates loom below 0%, indicating that the bearish feeling dominates the market.

• Negative financing rates discourage new buyers entering the market, since maintaining long positions becomes less profitable.

• If this trend persists, XRP could face a strong decrease as market confidence erodes more.

• Similarly, the OI in the XRP futures market has fallen from its local peak of $ 5.67 billion on January 17 to $ 2.4 billion to March 18.

• Historically, assets with a decrease in the struggle of open interest to maintain an upward impulse, since capital leaves the market.

• For XRP, this could mean that even the minor sales pressure could trigger a liquidation waterfall, especially if the leveraged positions are forced to close.

• Without a renewed interest of institutional or retail merchants, the most inconvenient XRP price.

The XRP market structure suggests a new $ 1.90 test

The XRP price action in the four -hour candle table has painted an inverted pattern in the V form, as shown in the table below.

Key control:

• A graphic pattern in the form of a inverted occurs when the price of an asset increases rapidly to a peak in a steep and almost vertical ascent and then falls in the same abrupt way, forming a form that resembles a “V.” the other way around ”

• This indicates that the purchase pressure has been exhausted.

• The supplier’s congestion zone between $ 2.35 and $ 2.42 acts as a hard -headed resistance area. This is also where the simple mobile average (SMA) of 100 periods and 200 SMA are currently found.

• The Relative Force Index (RSI) has fallen below the 50 brand, affirming the domain of sellers in the market.

• The Bears will now try to break the support area between $ 2.28, that is, 50 SMA and $ 2.20.

• Losing this level would see the price of XRP to the neckline of the predominant graphic pattern in $ 2.01.

• A closure below this level would confirm the continuation of the bearish trend, being the following logical movement the area between the minimum of February 28, $ 1.94 and the low range at $ 1.89, reached on March 11.

• Bulls must be maintained above 50 SMA to prevent the bassist trend from continuing.

• This will increase the possibilities that XRP breaks above the supply zone of $ 2.35 and $ 2.42 and later to the maximum of the employer in $ 2.47, invalidating the bassist perspective.

The popular Cryptographic analyst Dark Defender is still optimistic about XRP’s ability to recover from the bearish trend and enter the price discovery.

“The main correction in the weekly daily framework and the 4 -hour structure have ended for XRP,” said the analyst in a March 17 position in X.

Although there will be more “minor ups and downs” along the way, he added, the Altcoin has “started Wave 1 with an objective of $ 5.85”.

The key levels to observe the dark defender are a $ 2.22 support as support and resistance to $ 3.39.

“The next few weeks will be fantastic.”

This article does not contain advice or investment recommendations. Each investment and trade movement implies risk, and readers must carry out their own investigation by making a decision.