What to know:
- XRP price rises 3% as volume jumps, but structure still signals downside risk ahead.
- Analyst warns bullish candles may mislead as XRP fails to break key resistance.
- CoinGlass data shows rising activity, but no confirmed trend reversal for XRP yet.
On Tuesday, April 7, the XRP price moved higher in the past 24 hours as trading activity increased sharply across major exchanges. Despite the short-term gains, analysts caution that the broader structure remains unchanged and still points toward potential downside risk in the near term.
As of writing, XRP is trading at $1.34, marking a 3.06% increase in the past 24 hours. The trading volume is showing a strong bullish surge, up 69.89%, and is currently standing at $2.09 billion. Over the last week, the XRP price has gone up by 1.46%, according to CoinMarketCap.
Also Read: XRP Breaks Falling Wedge as Recovery Targets $1.42 Amid Bearish Pressure
XRP Price Shows Bearish Divergence, Lower Levels in Focus
Crypto analyst CasiTrades pointed out that the recent bullish candle might present a misleading signal for traders. He noted that making trades based on such movements without confirmation would be a mistake. As per the analysis, the price did not form a new peak but rather hit the level of resistance.
The structure of the chart, the formation of the five-wave move towards the level of resistance, is complete. Moreover, bearish divergence is seen during this formation. Usually, such patterns are regarded as an indication of weakness rather than strength.
The broader structure remains unchanged despite recent gains. XRP price continues to trade between defined support and resistance levels. The analysis suggests that multiple timeframes are aligned toward further downside movement. This keeps the bearish outlook intact for now.
Several downside targets have been highlighted depending on the existing structure. The initial target will be around $1.13 before a brief relief rally.
XRP Focus Shifts to Key Support Zones Below
In case the price experiences more downtrend pressure, it may go all the way to $1.08, where a macro support exists. An even further downside can be witnessed towards $0.87.
The analyst stressed the need to focus only on crucial levels and avoid being distracted by the noises that are present in the market.
Buying interest could potentially develop from lower support levels like .786 and .854. The bullish sentiment will be triggered upon breaking resistance and keeping support intact.
Surge in Volume and Open Interest
According to CoinGlass data, a 34.44% spike in future volume to $3.08 billion. Meanwhile, open interest increased by 0.25% to $2.46 billion. The XRP OI-weighted funding rate stands at 0.0045%.
The current data shows increased activity but no clear trend reversal yet. The price of XRP continues to move within its existing structure. Traders continue to monitor key levels for confirmation of the next directional move.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read: Cardano (ADA) Price Reclaims Key Level: Can Bulls Push Toward $0.29 Next?
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