As an analyst with over a decade of experience in the crypto market, I have witnessed numerous bull runs and bear markets. The current consolidation of XRP between $2.40 and $2.13 reminds me of a rubber band being stretched – it’s coiling for a significant move, either up or down.
Over the last week, following its psychological test at $2 on December 20th, XRP (XRP) has been holding steady within the range of $2.40 to $2.13, building tension for a potential surge or drop.
As long as the long-term outlook remains positive for this altcoin, one expert has pointed out that it needs to break through the current price level of around $2.30 in the near future to maintain its bullish momentum.
XRP has “buy wall” until $2.23, says analyst
As XRP fluctuates within a tight price range, an unidentified cryptocurrency data expert, CW, has remarked that there is a significant buying barrier temporarily propping up the digital asset, also known as an altcoin.
As a researcher, I’ve observed that the price of this buy wall hovered between $2.20 and $2.23. If the altcoin fails to maintain its position above this level, it might result in additional price drops or drawdowns. This is based on my analysis.
“If the price is supported, the $XRP will rise. If the support fails, it is likely to fall to the lower line.”
Currently, Dom, a cryptocurrency trader, shared that XRP’s market participants are once more placing bids on Kraken and Bitfinex. Notably, XRP appears to be showing stronger performance compared to other digital assets. Previously, active spot market buyers were found on Coinbase and Bitstamp, enabling XRP to hold a value above $2.20.
However, the trader believed that XRP is still “not out of the woods” and said,
“We need acceptance back into $2.30s to be in safer territory.”
XRP open interest drops 54% in 3 weeks
Despite generating buzz in the spot market for XRP, the futures market showed a contrasting trend. Data from CoinGlass revealed that the open interest in XRP decreased significantly, falling from $4.23 billion on December 3 to $1.95 billion on December 26, representing a 54% decrease over the period.
Such a significant drop during the holiday season implies that liquidity is running thin in XRP’s futures market, which may be a double-edged sword. With the crypto asset at a critical level, prices may be more volatile than expected.
Looking at the technical side of things, constructing a symmetrical triangle adds weight to the existing theory. On the daily price chart, it seems that XRP’s price will either surge or plummet when volatility resumes. This symmetrical triangle shows that there are equal chances for both bullish and bearish movements.
Based on our previous assessment, there’s a possibility that the price could surge past $2.30 quickly, potentially pushing it toward its pattern high of $2.95. But if it can’t hold above this support level, we might see a fresh swing low at $1.85, a price point last seen on Dec. 1.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of CryptoMoon.
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2024-12-26 23:21