Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- July gains were at risk as XRP dropped by over 35% in four weeks.
- The Open Interest rates dipped as sellers gained more control.
In July, the massive Ripple’s [XRP] pump, after the partial legal win against SEC, saw it tuck +70% gains after hitting a high of $0.94. However, the bearish grip seen from mid-July is far from over and threatens to clear last month’s gains.
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But the steady pullback afterward has stretched into August and threatens to clear the rest of the gains.
However, the drop has reached a crucial support zone established in 2022. It prompts the question; will the support zone induce sellers to exit the market?
Will the 2022 support stop the drop?
On the weekly chart, the $0.5600 – $0.6575 (cyan) was a support zone between July-December 2022. It was also a weekly bullish order block over the same period. But it was flipped to resistance in Q2 2023, only to be cleared in Q3.
At the time of writing, XRP had dropped to the same zone, shedding over 35% after a price rejection at $0.94. A liquidity hunt beyond the zone to $0.5 was likely in the next few days/weeks. But a rebound towards $0.90 could be feasible if the zone is retested as support.
Conversely, sellers could push XRP to $0.41 or $0.30, especially if Bitcoin [BTC] loses hold of $28k and drops further.
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Author: Benjamin Njiri
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