XRP Price Analysis: Breaking Through Resistance Levels
An earlier evaluation by CryptoCrypto suggested that a potential 27% price surge for Ripple’s XRP may not be in the cards.
Recent on-chain data indicated that large holders were divesting their holdings, while XRP/BTC price action hinted at a probable period of consolidation.
Despite these factors, XRP has managed to maintain stability within a tight trading range, notably defending the crucial $2.29 retracement level. However, a significant bullish breakthrough would be confirmed if the price surpasses $2.5.
Key Advantage for XRP Bulls in the Battle for $2.5
Observing the trading volume activity over recent months reveals a prevalent uptrend in buying pressure, as evidenced by the On-Balance Volume (OBV) indicator, although its pace of increase has slightly decelerated over the past fortnight.
Even with the breach of the previous support level at $2.95 and the prevailing bearish market structure on the daily chart, there remains a glimmer of hope for a potential recovery.
The Relative Strength Index (RSI) positioned under the neutral 50 mark, coupled with XRP testing the $2.5 resistance boundary four times in the preceding week, indicates a crucial juncture for the digital asset.
A closer examination of the H4 chart unveils a consolidation phase bounded by $2.3 and $2.5. Additionally, the OBV on the H4 chart displayed a minor downtrend while prices remained range-bound across the week.
Furthermore, the trading volume has notably decreased in comparison to the turbulent conditions witnessed at the start of February.
Analysis of the liquidation heatmap accentuated the significance of the short-term consolidation phase. Notably, two distinct liquidation clusters were identified in proximity to the price levels of $2.26 and $2.54, slightly beyond the confines of the established range.
For swing traders, capitalizing on this data could be advantageous. Keeping a close watch on potential reversals from these clusters and monitoring lower timeframes for retests can aid in identifying long or short entry points.
Moreover, the broader outlook remains optimistic, given XRP’s successful defense of the 78.6% retracement level. A breakthrough above the $2.5-$2.7 range may signal the initiation of a bullish trend.
Disclaimer: The views expressed in this analysis are personal opinions and should not be construed as financial advice or recommendations for investment decisions.