XRP Price Forecast: Can Altcoin Maintain $2.9 or Will it Decline?
The price range of XRP has been fluctuating between $2.95 and $3.23, with a midpoint at $3.1. A positive development for the network was the implementation of the AMMClawback upgrade on the XRP Ledger, aimed at enhancing regulatory compliance for AMM pools.
Although XRP has faced challenges in terms of its price performance, it is likely that buyers will step in to defend the demand zone between $2.9 and $2.95. Recent analysis from CryptoCrypto has highlighted the critical resistance level at $3.2, which could pose a threat to bullish sentiment in the short term.
Indeed, there was a price rejection at $3.15 on January 30, confirming the concerns raised.
Is XRP Going to Repeat its December Price Pattern?
In December, XRP experienced a significant surge from $1.88 to $2.9, followed by a period of consolidation within a range bounded by lows at $2 and highs at $2.62. The lower end of the range was tested multiple times, including a brief dip below the support level, before XRP initiated a sustained uptrend.
It is plausible that XRP might revisit the lower price levels and undergo consolidation around the midpoint before making another upward move. There was already a notable drop below $2.95 a week earlier, indicating a potential retracement.
Presently, trading activity is subdued, suggesting that a major price shift is unlikely in the coming weeks. A scenario where the midpoint acts as a support level could present an opportunity for buyers to enter the market.
An analysis of the 1-month liquidation heatmap has identified $3.2 and $3.45 as key levels of interest to the upside. It is anticipated that the price may gravitate towards these levels, particularly $3.45, where a bearish reversal could materialize.
Recent data from the liquidation heatmap pointed to $3.2 as a target for short-term bullish momentum. Traders may consider buying opportunities if XRP retests the $2.95 support zone, with a target set at $3.2.
However, a breach below $2.9 would invalidate the bullish scenario outlined above.
Disclaimer: The views expressed are personal opinions and should not be construed as financial advice or recommendations for trading activities.