XRP has recovered on April 7 since the low point of $ 1.61, but remains below the important level of resistance of $ 2.20. Can XRP break through this level or is a new crash ahead?
Negative funding rate for XRP
A possible indicator for the price direction is the Funding rate On the futures market. This is currently negative. This means that more traders assume that the price will fall instead of climbing. Since the dealers are outnumbered with short positions, they have to pay a fee to the long positions. Since the beginning of February, the funding rate has been below 0 %. This shows that the majority of dealers on the futures market has since been skeptical of the price development of XRP.
Open interest also sinks
Another indicator is the declining Open interest On the futures market. Open interest describes the total number of open futures contracts that are currently active on the market. An increasing Open interest often indicates increasing interest and participation. But how Currently at XRP means a falling Open interest A dwindling trust and less activity around the token. On January 17th that was Open interest Still at $ 7.87 billion, on April 10 it fell to $ 3.06 billion. In the past it was shown that projects with a falling Open interest Difficulties have to maintain an upward movement. This is due to the fact that capital and enthusiasm is missing to drive the price. Currently, this could even lead to sales pressure at XRP if positions are closed.
Strong resistance at $ 2.20 for Ripple
In addition to these on-chain indicators, XRP also faces a challenge at a technical level. The resistance level of $ 2.20 has not yet been broken in April. On April 9, XRP rose by 21 %, but the rally ended again at $ 2.20-just like on April 5. The course is currently supporting the 200-day average (SMA) at around $ 1.86. In order for XRP to develop further upward potential, the course must break through the resistance and close over $ 2.20. In addition, the next resistance, the 50-day SMA at $ 2.28, must be broken with a high volume. Then the likelihood that the resistance will have overcome and the course could move towards the 100-day SMA at $ 2.50. On the other hand it is Relative Strength Index (RSI) Still below the mean – a sign that a decline is more likely. If the support is lost at $ 1.86, a further decline appears to 1.61 or even $ 1.07. This scenario was previously predicted by the well -known trader Peter Brandt.