Rocket Pool (RPL) price has been in a strong downtrend since the break of the upward line at the start of June 2023. The cryptocurrency price has been performing zone-to-zone breakouts since the start of the downtrend.
The price has melted down roughly 48% from the high of $48. Recently, RPL price has formed support at $25 and initiated a bullish rally to rise above $30 but the move was halted as the price reached near $29.
Rocket Pool price retraced after facing rejection from $29 and has formed a minor support at $26.30. The previous candle closed as a bullish candle and the current candle is currently bearish, headed toward $25 support if the break of recent minor support happens.
If the meltdown extends further and the RPL price can break the support level of $25, it might head down toward the next major psychological level of $20. On the other hand, if bulls take control and push the price above the major resistance level of $30, it might fill the upper wick of the 1st August 2023 candle.
The downtrend seems to be pretty strong which indicates a high probability for the RPL price to fall toward $25.
Bi-weekly Update Of Rocket Pool
The Reth supply has increased by 3.5% to 497,980 as of 15 August 2023 which indicates an annualized growth of 91%. The pending/active mini pool count is 24,313. The node operator count has jumped by 1.2% to 3,125 with annualised growth of 32%.
the interest protocol is now supporting rETH on Optimism. Fuji Finance has also introduced two rETH vaults. Mean Finance has also announced support for rETH. National Finance also reported that their v3 on Arbitrum and mainnet will support rETH.
One of the major news was regarding Coinbase ventures, notified about their strategic investment into Rocket Pool by purchasing RPL tokens.
Will the RPL Price Break Below the $25 Level?
The cryptocurrency price has slipped below all the major exponential moving averages (EMAs), indicating bearish momentum. Chaikin money flow (CMF) score is -0.17, suggesting weakness and capital outflow in the market. CMF has been trading below the 0 mark since 5 July 2023 which shows a strong presence of bears.
The relative strength index has sunk below the 50 neutral mark and trades at 41.55, implying a rise in bearish momentum. The Bollinger bands have contracted suggesting a decrease in volatility.
The long/short ratio is 1.09 with 52.32% longs and 47.68% shorts suggesting that there is a higher number of positions from buying side in the last 24 hours.
Conclusion
The market structure and price action of Rocket Pool is highly bearish. Technical parameters indicate the probability of the price melting down to $25 support.
Technical Levels
- Major support: $25 and $20
- Major resistance: $30.10 and $32.20
