Friends in the crypto community, I am Zhao Gongming! The market represented by $XRP is gathering a storm. The price has declined to the critical area of $1.98, while a neglected data point — the open interest has counterintuitively increased to $37.3 billion, revealing the significant risks lurking in the market. Follow Zhao Gongming to penetrate the surface and see the impending battle between bulls and bears.
News: The 'false calm' under shrinking trading volume, with massive positions lurking, poses a risk of a market shift.
XRP trading volume has decreased by 21%, seemingly indicating waning market interest. But this is precisely the calm before the storm! The core point is: open interest has increased against the market trend by 4.33%. This means that a large amount of new capital is secretly building positions, betting that the market is about to choose a direction.
This signal often appears when the price is at a key support level, which is usually not a good omen. Instead, it suggests that once the support is broken, a mountain of stop-loss orders may trigger a 'waterfall' decline. The market is gearing up for a violent volatility breakthrough.
Technical analysis: The death cross trend has been established, and the key support level at 1.94 is facing its ultimate test.
The structure of the one-hour candlestick chart has become very dangerous. The price has closed at 1.9943, suppressed below the psychological barrier of 2.0 and the strong resistance level of 2.056. Although the MACD white line is above the 0 axis, a death cross trend has formed, and the energy bars have significantly shrunk, which is a typical signal of weak rebounds and a continuation of the decline. The price is testing the 'lower track of the rising channel' indicated by analysts, which is around the 1.94 support area. If this position is lost, technical selling will surge, and the downward space will be completely opened up.
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Zhao Gongming's views and strategies
Zhao Gongming is firmly bearish on XRP's future. A massive amount of open contracts is piling up on the eve of a market shift, coupled with the technical death cross and energy contraction, indicating a greater likelihood for bears. This feels more like a preparation for a 'premeditated' decline before a breakout.
Advice for holding positions: Risks are imminent. Please abandon fantasies and regard any rebound toward the 2.00-2.02 area as the last opportunity to reduce positions and escape. The core defense line is at 1.94, and once the hourly line breaks below this, one must decisively exit.
Advice for observation: No bottom fishing allowed. The real opportunity lies in waiting for the market to make a directional choice. One should patiently observe the price performance at the 1.94 support level. If a valid breakdown is confirmed, one can wait for the market sentiment to release before seeking a lower stabilization point.
If you are unsure about the specific entry timing and exit points, and for those holding positions, you can follow Zhao Gongming. Zhao Gongming will announce the daily currencies and entry points as well as exit timings in the chat room!#加密市场观察
