XRP Anticipated to Reach New All-Time High of $4.26 with a 53% Surge
As of the latest update, XRP appears to have successfully broken out of its recent consolidation phase and surpassed the $2.5 resistance level. The recent surge in buying pressure has led to a notable increase in the cryptocurrency’s value over the past 48 hours. Previous analysis had indicated that the $2.5-$2.7 range needed to transition into a supportive zone before a sustained uptrend on higher timeframes could be established.
With this requirement now fulfilled, the question arises as to whether XRP can sustain its upward momentum and achieve another substantial 30% gain, even in the absence of significant movement from Bitcoin [BTC] toward the $100k mark.
XRP Demonstrates Bullish Reversal on H4 Chart, Bounces Back from Key Fibonacci Level
Upon examining the daily chart, it can be observed that the Relative Strength Index (RSI) has crossed above the pivotal 50 mark, signaling a noteworthy shift in market momentum. Additionally, the On-Balance Volume (OBV) continues to exhibit an upward trend. Despite a sharp decline in XRP’s price during early February, the OBV displayed resilience, indicating a relatively low selling volume and laying the groundwork for an impending rebound.
The recent rebound occurred following a retest of the critical 78.6% Fibonacci retracement level, coinciding with the formation of a consolidation pattern. Typically, a recovery from this level is expected to target the 23.6% and 61.8% extension levels. Consequently, XRP’s longer-term price objectives for this upward leg are established at $3.73 and $4.26. Short-term targets are likely to be approached in the coming 2-3 weeks.
Examining the 4-hour chart reveals a bearish divergence between the price action and the RSI, while the OBV sustains a relatively stable trajectory. Collectively, these indicators suggest a probable consolidation phase around the $2.7 mark over the next few days rather than a significant pullback. Given XRP’s successful breach of key short-term resistance levels, a retreat below the $2.6-$2.68 range seems unlikely.
Noteworthy liquidity clusters were identified from the liquidation heatmap of the past month, particularly surrounding the $2.86 threshold. This area is poised to serve as a crucial target, given the substantial liquidation activity observed. Further north, the $3.37-$3.43 range emerges as a prominent magnetic zone due to the high concentration of liquidation events, suggesting a strong attraction for price movements.
Disclaimer: The views expressed in this piece do not represent financial, investment, or trading advice, and solely reflect the subjective perspective of the author.