XRP price prediction – Why $2.77 is the key level for a bullish reversal
Swing traders can keep an eye on the OBV breakout on the daily timeframe to make their next trading decision on XRP.
Key Takeaways
Is the momentum of XRP shifting bullishly?
In the short-term, it appears so. However, swing traders shouldn’t immediately go long, since the $2.5-$2.7 is a notable resistance zone on the price charts.
What is the long-term XRP price prediction?
A rally past the psychological $3 round number resistance would show bullish strength. From there, a move to $4 or $4.7 would be possible, according to Fibonacci extension levels.
The selling pressure behind Ripple [XRP] has been weakening. However, the price was still stuck beneath the $2.5-$2.77 resistance zone. This area represented an imbalance left behind on the 1-day timeframe charts, as pointed out in an earlier report.
The $1 billion Ripple raised through a Special Purpose Acquisition Company (SPAC), with funds set to be used to accumulate XRP, was a sign of XRP nearing an inflection point in the Digital Asset Treasury (DAT) race.
XRP price prediction remains bearish unless key resistances are overcome
On the 1-day timeframe, the imbalance up to $2.77 and the supply zone above at $3 were the two key resistances. The XRP bulls were not in control of the market yet. The structure remained bearish, and the OBV showed neither buyers nor sellers have been overwhelmingly strong.
The OBV was a strong clue for the next price trend. A move beyond the levels marked on the OBV would be the first clue of a real breakout. Until then, the bearish structure will hold sway.
The moving averages and the RSI both signaled bearish momentum for XRP on the daily timeframe. A rally past $2.69, the local high, and the $2.77 imbalance, would be a reliable bullish sign.
On the 4-hour chart, the price action showed a bullish character change with a move beyond $2.46, a local swing high. XRP pierced the moving averages and could use them as support before climbing higher.
A price dip to $2.35 before gains in the coming days was also a possibility traders should watch out for. Despite the seemingly bullish shift in the short-term, uncertainty around the long-term direction of XRP remains.
Going long now could be risky given the higher timeframe structure. It might be better to wait for the $2.5-$2.77 area to be flipped to a demand zone before swing traders attempt to go long.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
