- XRP sank to a zone of support just above a key Fibonacci level.
- The $0.68 zone could rebuff bullish efforts in the coming weeks.
Ripple [XRP] prices sank 17% from 16th December to 18th December before seeing a minor bounce from the $0.57 support zone. The technical indicators showed that long-term investors need not panic.
Instead, the recent pullback represented a buying opportunity. If Bitcoin [BTC] bulls could defend the $42k zone and push higher, it would be good news for XRP holders and the wider market as well.
The 61.8% Fibonacci level has been respected
Source: XRP/USDT on TradingView
The one-day price chart of XRP showed that the $0.57-$0.61 was a zone of support. On the lower timeframes, this area brought about a bullish market structure in mid-November. This rally saw XRP reach $0.7 before slumping once more.
While the price did recede to $0.6 again, the OBV has marched steadily higher. This showed buying pressure has been consistent and reinforced the idea that XRP would rally higher once more.
The RSI showed a reading of 45 to reflect bearish momentum at press time.
The $0.6 area represented a good risk-to-reward buying zone for XRP bulls targeting $0.7 and higher, provided Bitcoin does not witness a large wave of selling.
The formation of a range is a strong possibility
Source: Hyblock
AMBCrypto also analyzed the liquidation heatmap data from Hyblock. The past three months of data showed that the $0.55-$0.565 was an area with a high volume of estimated liquidation levels.
Therefore a sweep of this level would be a welcome sight, as prices would likely bounce higher afterward.
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To the north, the $0.63 and $0.68 also represented small but noticeable pockets of liquidity.
Additionally, the $0.686 level has served as resistance since 11th November for XRP. Hence, a range formation between $0.58-$0.68 over the coming weeks is possible.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
