XRP flashes key bullish signal: ‘Rebound setup in play!’
XRP's short-term bearish trend ends, eyes on $3.10 level.
Key Takeaways
Price action suggests that a quick rally could occur only if XRP clears the $2.825 level. Traders are over-leveraged at $2.70 on the downside and $2.825 on the upside.
XRP is once again testing its key support of $2.70 mark, the third time in six weeks. The repeated defense from this support zone has put traders and investors on high alert due to its past performance.
Current price and bullish signals
Given the current market sentiment and historical performance, crypto expert Ali Martinez shared a post on X (formerly Twitter) that has reinforced XRP’s bullish outlook.
Notably, XRP’s TD Sequential has turned bullish, now flashing a buy signal. He noted,
“Rebound setup in play!”
However, this bullish signal is recorded when XRP breaks out of a key resistance level.
At press time, the asset was trading at $2.80, up 1.35% over the past 24 hours.
This modest surge has fueled stronger participation from traders and investors, with CoinMarketCap data showing an 11% increase in XRP’s 24-hour trading volume compared to the previous day.
XRP price action and key levels to watch
AMBCrypto’s technical analysis suggested that XRP has started to reverse its previous downtrend.
On the four-hour chart, the asset has successfully broken out of the descending trendline, paving the way for a potential 10% price increase.
However, the 15-day and 21-day Exponential Moving Averages (EMAs) appeared to be acting as resistance levels.
Based on recent price action and technical indicators, the rally could only occur if XRP moves above both EMAs and secures a four-hour candle close above the $2.82 level.
If this happens, there is a strong possibility that XRP could rally 10.50% and reach the $3.10 level in the near future.
XRP presents mixed signals
Currently, traders appear to be following the bullish trend by heavily betting on long positions.
On-chain analytics tool CoinGlass revealed that XRP’s major liquidation levels were at $2.70 on the downside (support) and $2.825 on the upside (resistance) at press time.
These are not just key liquidation levels, traders at these points are over-leveraged, with $77 million worth of long positions and $19.55 million worth of short positions.
This clearly reflects the bullish market sentiment for XRP.
The only concern raising a red flag for XRP is the activity of investors and long-term holders.
According to CoinGlass data, nearly $10 million worth of XRP tokens have been moved onto exchanges in the past 24 hours, hinting at potential dumping by holders after the modest price recovery.
Meanwhile, Binance’s exchange reserves jumped by 61 million XRP during the same period, rising from 2.928 billion to 3.538 billion as of the 1st of September.
