Crypto markets witnessed a reversal today as the price of oil experienced one of its most significant intraday swings in history. After an initial surge of around 30% that saw Brent crude hit $120 a barrel due to the escalating conflict in the Middle East and the effective closure of the Strait of Hormuz, the market fell back to $100.
Conclusion
- Oil prices fell sharply after reports that G7 countries could release up to 400 million barrels of crude from reserves, easing inflation concerns.
- XRP is consolidating between $1.34 and $1.40 after rejecting the local high of $1.47 earlier this month.
- Technical indicators show neutral momentum and stable accumulation, selling pressure may decrease near the $1.30 support level.
The sudden correction comes after an exclusive report by the Financial Times, which says that G7 finance ministers, in coordination with the International Energy Agency (IEA), are considering the biggest emergency intervention ever: the release of up to 400 million barrels of crude oil from strategic reserves.
For the cryptocurrency sector, and for XRP in particular, this cooling of energy-based inflation fears has provided a much-needed window of stability.
XRP price analysis
The current price action on the 4-hour chart of XRP/USDT (XRP) is showing a bullish consolidation period after a significant rejection from the local high of $1.47.
After reaching its peak on March 4, the asset has been in a steady downtrend characterized by a series of highs and lows. However, an important bull defense attempt is now seen in the $1.34 to $1.35 range, where the price has started trading in a narrow sideways cluster.
Immediate support is firm at the $1.30 level, which served as a key floor at the end of February.
Conversely, additional resistance is centered at $1.40, a psychological barrier that has repeatedly stalled recovery efforts. If the bulls can successfully use the current macro stabilization to push back above $1.40, the next resistance target is at the highs of $1.47.
Technical indicators suggest that while the immediate trend is cautious, the selling pressure may be nearing an end. The Money Flow Index (MFI-14) is currently at 44.58, indicating a neutral momentum that has recovered from the oversold decline of 20 on March 7.
This suggests that capital is slowly flowing into assets at these lower price points.
In addition, the Accumulation/Distribution line remained relatively flat at 26.1 billion, which despite the price drop from $1.47, did not see a massive outflow of volume, suggesting a “strong hand” holding volatility.
For a strong pullback, traders are looking for a break from the current tight range, especially closer to the $1.36 level seen on the last candlestick.
Failure to defend the immediate $1.34 floor could lead to a retest of the initial $1.30 support, while a break could pave the way for a return to $1.50 if global energy fears subside.
