Analyzing Potential XRP Price Scenarios with $2.3 Support
Following a notable 280% surge in November, Ripple’s XRP continued its upward momentum into early December, reaching $2.9, reflecting a 30% increase. However, recent days have witnessed a slight cooling-off period, with $2.3 emerging as a critical support level. So, what potential outcomes are in store for XRP’s price trajectory post this cooldown?
Forecasting XRP’s Future Movements
Examining the shorter timeframe, XRP has successfully maintained support at $2.3 since December 2nd. If this short-term foundation remains intact, XRP may aim to revisit the recent peak of $2.9 or even surpass $3, targeting the 2021 cycle’s peak of $3.3. The Relative Strength Index (RSI) on the 4-hour chart aligns with this scenario, staying above the neutral 50 level, indicating substantial demand for XRP.
Nevertheless, the lack of significant short-term capital inflows, as evidenced by the neutral reading on the Chaikin Money Flow (CMF), fails to confirm a strong bullish bias. A clear breakthrough past the median mark could bolster XRP’s chances of reaching $3 or the 2021 highs.
Despite this, XRP’s overall market structure remains robust based on analysis of higher timeframe charts. On weekly charts, price momentum appears robust, with buyers dominating according to the Directional Movement Index (DMI) signals.
However, a drop below $2.3 might trigger a downward push towards the subsequent support level and the Golden ratio marked at $1.5.
Insights from Liquidation Heatmap Analysis
Data from Coinglass’s liquidation heatmap reveals the presence of liquidity clusters on both ends of the price spectrum. Leveraged shorts accumulate beyond $2.6, while recent activity has tapped into liquidity around $2.53.
Notably, unexplored liquidity zones at $2.45 and $2.38 remain untested. Liquidations at these levels could precede XRP’s further ascent. Consequently, the price of XRP may retrace towards $2.45 or $2.38 before targeting higher levels above $2.6 due to a liquidity sweep process.
Nonetheless, as the $2.3 support also serves as a crucial double, any significant downward movement could hamper the short-term bullish sentiment.
Disclaimer: The views presented are personal opinions and do not constitute financial or investment advice.