XRP Price Forecast: Battle Between Bulls and Bears Intensifies Around THIS Key Level
After analyzing the price charts and liquidation heatmap, it appears that Ripple’s XRP is facing a short-term bearish trend. Similar to the broader cryptocurrency market, XRP has been impacted by the recent pullback in Bitcoin (BTC) over the last couple of weeks.
Looking at the daily timeframe, there are indications of a bearish XRP price forecast. If XRP falls below the $2 support level, it could potentially lead to a further decline towards $1.4 or even $1. This could create an opportunity for swing traders to consider entering the market.
XRP Price Forecast: Tug of War Between Bulls and Bears for Control at $2
Analysis of XRP’s daily timeframe suggests a bearish undertone. The price movement exhibits a bearish pattern, signaling an ongoing retracement phase. The Awesome Oscillator has dipped below the zero line, indicating a strengthening downward momentum.
While a drop to the 61.8% and 78.6% Fibonacci retracement levels is feasible, it may not be imminent due to robust buying interest within the $1.96-$2.2 range. This zone has been recognized as a key support level based on the daily chart dating back to December 1st.
The A/D indicator continues to show an upward trend, indicating consistent buying pressure. Despite the shift in momentum, selling volume has been relatively subdued, as depicted by the declining volume bars over the past few weeks.
Accumulation of Liquidity and Potential Price Targets on the Horizon
While XRP bulls strive to defend the $2 level, there is a modest accumulation of liquidity beneath this support zone. The liquidation heatmap highlights the $1.98 and $2.23 areas in bright green, suggesting that these levels could serve as notable price targets in the near term.
There is a possibility that XRP may revisit these levels and experience a temporary bounce towards the alternate liquidity pool, leading to a consolidation phase in the weeks ahead.
The market sentiment of XRP is expected to be influenced by Bitcoin’s price direction in the coming days.
Disclaimer: The views expressed in this article should not be considered as financial, investment, or trading advice and solely represent the author’s perspective.