- The divergence in the CVD on the spot was a cause for concern.
- The momentum and sentiment was bullish.
Ripple [XRP] The trend of the stock market has been rising over the last ten days, as the euphoria surrounding the a Bitcoin [BTC] The market was seized by the all-time high. The higher timeframe analysis revealed that XRP may face significant obstacles in the future.
The technical indicators and the market structures support the idea of XRP gaining more gains. But the lower timeframes indicated that the bulls were not strong enough to maintain the rally.
HTF levels are critical for the challenges ahead
The 12-hour chart shows that XRP broke out of the bearish market structure at the end of February and retested its former bearish order blocks as support. It then had a strong rise past the $0.6 zone of resistance.
The RSI indicated a strong bullish movement, and the OBV slowly trended upward over the past few months. This trend of buyer strength could push prices higher.
XRP has risen by 21% over the past week, from $0.5288 to $0.642. The $0.704 – $0.712 resistance area forced XRP bears to retrace their moves twice since last November.
Zooming in on the chart, AMBCrypto noticed that XRP had formed a range from July 2023 between the $0.704 to $0.501 levels. The trend is bullish now on the 12-hour chart, but it could change near $0.7.
Lower timeframe demand is on the rise
The spot CVD is down over the last five days.
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The lackluster demand for the spot market, even as the prices rose rapidly, suggested that this rally could be mainly driven by speculative activity.
The Open Interest rate and the funding rate continue to support the idea that the market is bullish. The recent incongruence of the CVD with the prices of XRP was a cause for concern.
Disclaimer: This information is not intended as legal advice. financialThis is solely a writer’s personal opinion.
“This article is not financial advice.”
“Always your own research before making any type of investment.”
Source: ambcrypto.com