- XRP crashed by 12.12% after failing to break the BOS level at $2.40.
- Open Interest dropped 16% meaning bulls were exiting en masse $38.33M in liquidations, with $34.63M from long positions.
Ripple [XRP] rejected off the Break of Structure (BOS) level at $2.40, unscathed to decline 12.12% to $1.69 as sellers completed control there.
Market forces became bearish after the price crossed below the Equal Lows (EQL) to confirm the Change of Character (ChoCh).
The vital support level at $1.60 became the main upcoming benchmark after this dominant market-moving event. Ripple could probably drop to $1.45 if price breaks through the $1.60 barrier.
Source: Trading View
However, XRP experienced a temporary recovery to $1.85 after $1.60 remained stable and buyers increased their activities. XRP was rejecting the $2.00 level as of press time, and failure to recover this BOS level could limit continued gains.
The current bearish structure signaled that buyers needed fresh triggering events for sellers to lose control of the market or else, XRP could drop below the $1.60 level again.
Whales, MACD, RSI are bearish
Furthermore, XRP’s 12-hour chart affirmed this decline below the $2.00 support, indicating the market structure was bearish. A breakdown of the descending triangle accelerated bearish pressure, suggesting the price could fall to $1.60 or lower if the move to $1.85 did not hold.
Key indicators reinforced this bearish outlook. The RSI moved closer to oversold territory as it continued to decline.
Additionally, the MACD displayed a strong bearish signal with expanding red bars, highlighting increasing bearish market momentum.
Source: Trading View
Large Ripple holders were also bearish following a transfer of $5 million worth of XRP tokens for selling recently, indicating weakening market confidence. The psychological support level at $1.00 could be next if XRP returned and fell below $1.60.
Universally accepted support at $0.67 could be the last defense if a price breach occurred below $1.
The negative market sentiment could only be challenged by maintaining steady price growth above the $2.10 level.
XRP searches and OI declines
Moreover, XRP’s derivatives market displayed clear signs which indicated a warning direction. Open Interest declined 16% to reach $3.07 billion as per Coinglass which indicated most traders exited the market with bullish interests.
The market-change signal was confirmed from derivatives liquidations valued at $38.33 million, which included $34.63 million from open long positions.
These decreased convictions in derivatives led to bearish forces, which showed that both futures and spot markets reflected negative trends. The taking down of leveraged bets led to increased risks of market downfall.
Source: CoinMarketCap
Product search interest in XRP also saw a steep decline that was another supporting factor behind the weakness of the market. Internet traffic indicated a drop in retail interest and waning customer attention on XRP.
The absence of natural market euphoria complicated the generation of an upward bounce since there was no fuel with which the traders could rebound without positive momentum.
This combination indicated that XRP could continue dropping in the meantime.
