XRP gains 22% as Bitcoin breaks ATH, but here’s what the bears are doing

• XRP posted large gains as Bitcoin broke its all-time high.
• Caution from XRP bulls was warranted based on the liquidity pockets.

Ripple [XRP] bulls burst into life on the 11th of March. They forced prices to appreciate by 22.37% from the day’s open at $0.608 to reach $0.744 before selling activity pushed prices below $0.7 again.

The token exceeded AMBCrypto’s expectations laid down in a recent report, where a move to $0.7 was anticipated. We got more than that, but it also raised questions about whether the demand would be sustainable.

Is a rejection underway now?

The $0.7 range highs were breached on the 11th, but the bulls were unable to defend this level as support. This was similar to the price action in early November when a swift rally to the $0.7 resistance was followed by a rejection that was just as quick.

The OBV was an encouraging sight as it broke above the highs from July and remained above. A sustained increase in the buying volume could keep the bears at bay, but it was unclear if this optimistic outlook would hold.

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Instead, now that the liquidity just above $0.7 was swept, a move southward to $0.64 or $0.52-$0.54 could commence. Prices are attracted to liquidity, and despite the strength in the altcoin market, XRP has lagged.

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The surge in Open Interest showed intense speculative activity

Source: Coinalyze

As XRP prices bounded higher, the Open Interest followed. It rose from $600 million to $830 million, and the spot CVD also ticked higher. Yet, the latter indicator continued its former downtrend.

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This was bad news for the bulls. It showed that the run upward was driven by the futures market and was indeed a liquidity grab, not a rally borne by genuine demand.

Hence, a retracement toward the $0.64 and $0.54 support levels could follow.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.