- Higher timeframe market structure was bearish, but XRP might see some gains in the next day or two
Liquidation levels chart showcased two short-term price targets before the next downward move
As a crypto investor with some experience under my belt, I’ve seen my fair share of market ups and downs. And based on the current XRP price action, I believe there might be some gains in the next day or two, but the higher timeframe structure remains bearish.
Over the last two weeks, the number of XRP “whales” – large-scale investors or holders – has expanded, signaling accumulation. Additionally, according to a recent analysis by AMBCrypto, there has been an increase in the circulation of XRP that had previously been inactive. This trend suggests that selling pressure may have been present in the market.
As a crypto investor, I’ve observed that XRP‘s value dipped to $0.382 in the past 24 hours, but it rebounded and is currently hovering around $0.43. Despite this short-term recovery, the overall trend on the larger timeframes appears bearish. However, I noticed some intriguing activity on lower timeframe liquidity charts, suggesting a potential further price surge could be in store.
Here’s what XRP traders can be prepared for –
11-month-old range finally succumbed to selling pressure
At the $0.46 mark, XRP hit its lowest point within the past 11 months, as indicated by the purple line. The narrower price range that had held since mid-April was also surpassed during this time. This significant drop suggests that bears have taken control, and it’s possible for losses to continue given the weakened position of bulls.
As a market analyst, I’ve observed that the Fibonacci levels have indicated that the bearish trend could extend to $0.357, representing a 23.6% increase from the previous price level. At the current moment, the resistance lies at the 50% extension level of $0.435. Short sellers may consider initiating their trades within the range of $0.448 to $0.466.
The OBV (On-Balance Volume) indicator kept declining, revealing significant selling activity in the market. At the same time, the Daily Relative Strength Index (RSI) stood at 30, signaling oversold conditions. Although entering an oversold area doesn’t assure a price rebound, it is essential for traders to stay cautious.
Further proof that short-term price gains may be likely
In simpler terms, the data from AMBCrypto’s analysis reveals that there are more short positions than long ones in the market. This imbalance could potentially lead to a situation known as a “short squeeze,” where the price surges to touch important liquidity thresholds, forcing those holding short positions to buy back their shares and thus amplifying the price rise.
Read Ripple’s [XRP] Price Prediction 2024-25
Should XRP reach a price of $0.461, there were significant short positions that would be forced to close. Additionally, at the $0.47 level, numerous short positions would also be liquidated, making it a notable target before another potential price decrease.
The price reached around $0.47, which was slightly above the 78.6% Fibonacci retracement level at $0.466. This hinted at a potential bearish trend reversal based on the chart analysis.
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2024-07-06 14:15