XRP established a trading range of $2.95 to $3.23, with the mid-point at $3.1. The recent implementation of the AMMClawback upgrade on the XRP Ledger, aimed at enhancing regulatory compliance for AMM pools, brought positive news for the network.
Despite facing challenges in terms of price performance, buyers are likely to defend the demand zone around $2.9 to $2.95. Notably, recent analysis from CryptoCrypto highlighted concerns for the bulls in the short term, particularly with regards to the $3.2 level.
This concern materialized with a rejection observed at $3.15 on January 30.
Is the XRP December price pattern set to repeat?
In early December, XRP experienced a notable surge from $1.88 to $2.9, followed by a period of consolidation within a range, with lows at $2 and highs at $2.62. The lower end of the range was tested twice, including a brief drop below this level, before XRP resumed its upward trend.
Therefore, it is plausible that we might witness another test of the lower price levels, followed by consolidation around the mid-point before any significant upward movement. A noteworthy dip below $2.95 had already taken place a week earlier.
Currently, trading volume remains low, indicating a lack of significant movements expected in the coming weeks. Should the mid-range level convert into a support zone, it could present an opportunity for buyers.
Looking at the one-month liquidation heatmap, key levels at $3.2 and $3.45 are marked as crucial zones of attraction. The price is likely to gravitate towards these regions, particularly $3.45, where a bearish reversal might occur.
The recent liquidation heatmap suggests a short-term positive target at $3.2. A rebound from the $2.95 demand area could signal a buying opportunity for XRP traders targeting $3.2.
Conversely, a drop below $2.9 would disrupt this optimistic scenario.
Disclaimer: The views expressed are based on personal opinions and do not constitute financial advice or recommendations for investment or trading decisions.