CoinDesk Report:
The market structure in higher timeframes is bearish, but XRP may see some gains in the next day or two. Liquidation level charts indicate two short-term price targets before the next downturn.
XRP has seen an increase in whale activity over the past two weeks, suggesting a growing number of large holders. A recent report from AMBCrypto also notes an uptick in dormant supply, indicating potential selling pressure.
After dropping to $0.382, XRP rebounded to $0.43 within the last 24 hours. At the time of writing, the price trend remains tilted towards higher timeframes. However, lower liquidity charts suggest the possibility of further rebounds.
Here’s what XRP traders should prepare for:
An 11-month series finally succumbs to selling pressure
XRP marked a purple low of $0.46, the lowest since August 2023. The smaller range that had been in play since mid-April has also been breached. This rapid decline suggests bears have been dominant, and with bulls exhausted, further downside could follow.
Fibonacci levels (in blue) indicate the 23.6% extension level at $0.357 is the next target for bears. The 50% level at $0.435 acts as resistance at the time of writing. Short sellers may trade in the range of $0.448 to $0.466.
OBV continues to decline, highlighting stable selling volume in the market. The daily RSI is at 30, indicating oversold conditions. While oversold conditions do not guarantee a price rebound, traders should remain cautious.
Further evidence for potential short-term price rises
AMBCrypto’s analysis of liquidation levels found a negative cumulative delta. Simply put, there are more bearish positions than bullish ones, which could result in a short squeeze and impact critical liquidity clusters positively.
Read Ripple’s [XRP] Price Forecast 2024-25
If XRP reaches $0.461, high leverage short positions will be liquidated. The $0.47 level could trigger widespread short-term liquidation, marking these two levels as short-term targets before the next economic downturn.
Additionally, the $0.47 level appears slightly above the 78.6% retracement level of $0.466, reinforcing the bearish reversal notion on the charts.
Disclaimer: The information provided does not constitute financial, investment, trading, or any other form of advice and is solely the opinion of the author.
