Is XRP price going to crash again?

The XRP price (XRP) has recovered from its lower $ 1.89 reached on March 11, but it is still negotiated below a key resistance zone. Will the price of XRP maintain the recovery or the decline in the coming days?

XRP funding rates show a lower feeling

One of the clearest signs than there are more problems to come for XRP is the presence of negative financing rate and the decrease in open interests (OI) in its term markets.

In relation: The role of XRP in American digital stocks raises questions about the usefulness of tokens – does it belong?

Key points:

• Funding rates are periodic payments made between long and short traders in perpetual term contracts to maintain prices aligned on the cash market.

• When this metric becomes negative, it means that the open -out sellers pay long, indicating that the lowering feeling dominates.

• XRP financing rates oscillate below 0%, indicating that the lowering feeling dominates the market.

• Negative financing rates discourage new buyers from entering the market, because long position holding becomes less profitable.

• If this trend persists, XRP could face a sharp decline as market confidence is further eroding.

• Similarly, the XRP OI on the term market went from its local peak of $ 5.67 billion on January 17 to 2.4 billion dollars on March 18.

• Historically, assets with a drop in open interests have trouble maintaining upward dynamics because capital leaves the market.

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

• Without a renewal of the interests of institutional or detail merchants, the price of XRP is more disadvantage.

The structure of the XRP market refers to a reward of $ 1.90

The action of XRP prices on the four-hour candle graph has painted an inverted V-shaped pattern, as shown in the graphic below.

The main dishes to remember:

• An inverted V -shaped graphic pattern occurs when the price of an asset quickly increases a peak in a steep and almost vertical ascent, then falls just as suddenly, forming a shape that looks like a “V.” upside down

• This indicates that the purchase pressure has become exhausted.

• The supplier congestion zone between $ 2.35 and $ 2.42 acts as a resistance area for rigid general costs. This is also where the simple mobile average at 100 periods (SMA) and 200 SMA are currently.

• The relative force index (RSI) fell below the 50 mark, affirming the domination of sellers on the market.

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

• The loss of this level would see the drop in the XRP price to the neckline of the graphic model in force at $ 2.01.

• A fence below this level would confirm the continuation of the downward trend, the next logical decision being the area between February 28 of the lowest of $ 1.94 and the low range at $ 1.89, reached on March 11.

• Bulls must hold above 50 SMAs to prevent the downward trend from continuing.

• This will increase the chances for XRP to exceed the supply area of ​​$ 2.35 and $ 2.42 and later in the model at $ 2.47, invalidating the lower perspectives.

Crypto Dark Defender’s popular analyst remains optimistic about XRP’s ability to recover from the downward trend and to grasp the discovery of prices.

“The main correction on the weekly framework, the daily framework and the 4 -hour structure is completed for XRP,” said the analyst in an article on March 17 on X.

Although there will be more “high and minor stockings” along the way, he added, Altcoin “started wave 1 with a goal of $ 5.85”.

The key levels to watch for Dark Defender are support at $ 2.22 as a support and resistance at $ 3.39.

“The coming weeks will be fantastic.”

This article does not contain investment advice or recommendations. Each investment and negotiation movement involves risks and readers should conduct their own research when they make a decision.