XRP Eyes Double Bottom After Sharp Rejection at $1.65 Level

On Tuesday, Feb 17, XRP is trading at $1.47 after failing to rise above the resistance level of $1.65. XRP is up by 0.82% in a day. However, the momentum is slowing down significantly, as the trading volume declined by 46.76% to $2.77 billion, even as the market capitalization increased to $89.69 billion.

Source: CoinMarketCap

XRP Weakens After 0.618 Fibonacci Rejection

Crypto analyst CasiTrades pointed out that XRP reacted exactly as expected, failing to rise above the heavy resistance established around the macro 0.618 Fibonacci level over the weekend, which resulted in XRP pulling back below $1.53.

The momentum of XRP declined immediately after the rejection, and the sharp correction that resulted from the rejection of XRP above $1.65 was “too sharp” and therefore could not support XRP’s upward momentum without another leg.

Analysts also pointed out that the chart structure now suggests that the coin could potentially form a double bottom around $1.11 and even deeper liquidity around $0.90, which are the most significant support zones.

Source: X

On the upside, XRP needs to rise above $1.65 to show that the buying pressure is resuming and that the correction is now over. This resistance level has established multiple intraday reversals in recent days and is therefore significant among traders.

CryptoWZRD, an analyst, mentioned that the latest daily close has been termed an “indecisive” move. He has also stated that the long position target he had set was reached before the consolidation began. 

Any long position is contingent upon the price staying above $1.53. He has also stated that he is looking at intraday liquidity levels to spot the next trade signal.

Source: X

Also Read: AAVE Holds Ascending Trendline as Analysts Eye $190–$1000 Targets

Open Interest and Volume Declines

CoinGlass data shows that the derivatives volume has decreased by 38.97%, to $4.90 billion. The open interest has also gone down by 0.78%, to $2.53 billion. The OI weighted funding rates are currently negative at -0.0148%. 

Source: CoinGlass

RSI Neutral as MACD Signals Fading Bearish Momentum

The Relative Strength Index (RSI) is currently at 42.01, while its signal is at 34.78. This is in the neutral momentum area. It is far from the 70 mark that is considered to be in the overbought area. The recent upswing from the low 30s is an indication that there is less downward momentum than there was before. 

The Moving Average Convergence Divergence (MACD) is currently at 0.02235 for the MACD line. The signal line is at -0.10380, while the histogram is at -0.12615. The histogram coming closer to zero is an indication that the bearish momentum is weakening. 

Source: TradingView

XRP is starting the new trading week at an important juncture in the market. The price is stuck in the middle of weakening momentum and high resistance. The next decisive move, either a retest of deeper support or a breakout above $1.65, will determine the short-term trend direction.

Also Read: XRP Price Analysis: Gravestone Doji Warning Emerges as $1.65