XRP: Should you be looking out for a price dip?
- XRP might not achieve a record-breaking rally in the coming weeks.
- Traders and investors could watch out for a retest of the HTF resistance zone.
Ripple [XRP] has a bullish market structure on the 12-hour chart once more. But despite the bullish sentiment across the crypto market, XRP was unable to break past the 7-month range it has labored within.
AMBCrypto had earlier reported that a whale had withdrawn 18 million XRP tokens off the centralized exchange Binance [BNB].
This event highlighted that big players were still looking to accumulate, even though Bitcoin [BTC] has vastly outperformed it in recent months.
XRP is headed for the range highs next
Source: XRP/USDT on TradingView
The move above the $0.624 level occurred on the 2nd of March and showed a bullish market structure. Since then, XRP has risen to $0.6685 before falling to the $0.52-$0.54 area of interest (cyan box).
This showed that, despite the dip, prices were headed higher at press time.
XRP has traded within a range (purple), with the $0.45-$0.48 being a higher timeframe demand zone and the $0.7-$0.74 being a resistance zone.
Although the RSI was at 55 to show weak bullish momentum, the structure indicated that further gains are expected.
Yet, the OBV has not broken above its 2024 resistance level. This was due to a recent lack of high buying volume even though the indicator trended higher.
Hence, another dip toward the $0.54 area was possible, especially if Bitcoin drops below the $66k level.
Where does the next liquidity pocket lie?
Source: Hyblock
Prices are attracted to the areas where the greatest amount of liquidity lies. At press time, the $0.69 level was estimated to have $5.2B in liquidation levels.
Hyblock data also showed that the $0.65 area has $1.3B in liquidations.
How much are 1,10,100 XRPs worth today?
Hence, it is likely that XRP will make it to the $0.7 resistance in the coming days. However, after sweeping this liquidity, the prices would likely fall toward the $0.5 zone in search of liquidity thereafter.
A break above $0.7-$0.74 and defense as a demand zone would encourage investors.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
