Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
RPL price has undergone a bearish breakout, escaping from the upward channel and plunging below the 100-day moving average. The movement signaled a bearish reversal and shift to a downtrend. The price has been declining strongly and will soon reach to January lows if bearish momentum prevails.
After breaking the psychological level of $30, the price formed support at $29. The previous candle was successful in breaking and closing below it. The current candle has broken the low of the previous candle and is headed toward the support level of $25.70. Rocket Pool price has been in control of bears since the break of the upward channel.
Bi-Weekly Update of Rocket Pool
Reth, a staking token of Rocket Pool supply has increased by 0.29% to 481,073 with an annualized growth of 7%. The active mini pool count has also surged by 2.7% to 26,696 and the node operator count has also increased by 1.2% to 3,087.
Rocket Pool also witnessed one of the largest daily redemptions of its Rocket Pool Ether (RETH) token this week, with one trader redeeming $12.3 Million worth of tokens before sending it to Binance.
A total of 6420 RETH was redeemed on July 24, 2023, the wallet transferred the ETH to Binance. Currently, the total value tocked of Rocket Pool is $1.84 Billion, according to Defilama, making it the second largest liquid staking protocol after Lido.
Will RPL Price Fall to $25.70?
The cryptocurrency price trades below 20, 50, and the 100-day exponential moving average, indicates bearish momentum. Chaikin money flow (CMF) score is -0.46 implying strong weakness in the market. CMF has been trading below the 0 mark since 5th July, suggesting a strong influence of bears over the price.
The relative strength index (RSI) has entered an oversold zone and currently trades at 29.13 indicating price is in strong bearish momentum. RSI entering an oversold state also indicates a high likelihood of seeing a resurgence of buyers’ interest.
This might help the price in potentially halting the downtrend and initiate a short-term recovery phase. Traders should monitor this scenario closely. The Bollinger bands have slightly expanded indicating a rise in volatility and the price is headed toward the lower band which resides at $26.46.
The long/short ratio of Rocket Pool is 0.70 with 41.26% longs and 58.74% shorts signifying the strong influence of sellers in the last 24 hours.
Conclusion
The market structure and price action of Rocket Pool are strongly bearish and currently show no signs of bullish strength. Technical parameters suggest that the price is in strong bearish momentum but the RSI has entered into an oversold zone and might witness a short-term pullback.
Technical Levels
- Major support: $25.70 and $24
- Major resistance: $32.20 and $38
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/08/04/rocket-pool-price-prediction-rpl-price-melts-below-29-level/