- The failed mid-range support over the past few days indicated that a move toward $0.5 or $0.46 was likely.
- A price bounce toward $0.6 might occur as prices search for liquidity.
As a seasoned analyst with over two decades of experience in this dynamic market, I’ve seen bull markets turn bearish and vice versa more times than I can count. The current state of Ripple [XRP] is no exception.
The digital currency, XRP, failed to regain the $0.585 resistance level. A recent analysis suggests that if it manages to surpass $0.56, a potential rise towards $0.64 might occur.
Initially high optimism about Bitcoin‘s price was shattered as it fell beneath $60k, causing a ripple effect that pulled down the entire altcoin market. Let me share some insights on the near-term and long-term predictions for XRP instead.
XRP bulls on the backfoot
Over the past year, the price range of the purple formation has extended between $0.46 and $0.71. The middle point within this range is approximately $0.585.
In the past few days, this level and the 20-day moving average (yellow) acted as resistance.
In simpler terms, the Moving Average Convergence Divergence (MACD) recently displayed a downward crossover, suggesting that the market’s momentum is becoming more negative. Additionally, the lower boundary of the Bollinger Band, currently at $0.5, might be reached in the near future.
Over the next few weeks, it seems we might see another test of the lower bounds of the mid-range, as the resistance there could strengthen.
Liquidity pools show XRP could see a bounce
As a seasoned trader with years of experience under my belt, I have witnessed numerous market situations where the liquidity levels delta took a deep negative turn, indicating that short positions held an overwhelming sway. In such instances, it becomes crucial to take action to restore balance and mitigate potential losses. One strategy that comes to mind is a short squeeze or a price move upward. This tactic works by forcing short sellers to buy back their shares at a higher price due to the increased demand, thereby pushing the price up even further and potentially leading to substantial profits for those holding long positions. It’s essential to keep in mind that market conditions can change rapidly, so it’s always important to stay vigilant, adapt quickly, and make informed decisions based on the current situation.
The $0.586 and $0.598 levels have the highest liquidity nearby.
Is your portfolio green? Check the XRP Profit Calculator
During the past week, the periods with significant liquidity concentrations were found at $0.56 and $0.586. It’s expected that whichever of these areas gets tested first could lead to a price movement reversing, drawing liquidity away in the opposite direction.
As an analyst, I’m projecting that due to market fluctuations, traders might encounter some volatility in the near future. If the price of XRP trends upwards towards $0.6, it could open up a profitable selling opportunity for swing traders. On the other hand, a range between $0.46 and $0.5 would potentially present a lucrative buying opportunity.
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2024-08-16 04:10