XRP is likely to see another 9% move higher; the reasons are pretty surprising
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- The imbalance to the north was likely to be filled in the coming days.
- A push as high as $0.5 can occur, but bulls can look to take profit along the way.
XRP bulls have persistently defended the $0.32-$0.33 area since the November crash. The retest of the same zone in early January saw the buyers force a move past $0.35 on January 9. This flipped the lower timeframe bias bullish. Soon thereafter a surge above the mid-range mark at $0.37 followed, and XRP continued higher still.
Read XRP’s Price Prediction 2023-24
In recent hours of trading, XRP managed to climb past the range high at $0.412 and has succeeded in closing a 4-hour session above said level. The bullish momentum was likely to take it higher, and any pullbacks to the $0.4 area can develop into buying opportunities.
XRP bulls intend to breakout past the range highs, and the inefficiency further north remains unfilled
The RSI exploded above the neutral 50 mark when the price pushed itself past the mid-range mark at $0.37 on January 11. Since then, the price climbed as high as the range highs, rejected to retest the bullish daily breaker, and at press time looked to be on track to close the session above the two-month range highs.
This was exciting news for the long-term bulls and higher timeframe breakout traders. Yet, it remained a little early to call for targets such as $0.55, the October high.
The fair value gap on the daily chart was highlighted in white. It was likely that XRP would climb higher to $0.458 to fill this gap. The market structure was also bullish, and the OBV’s uptrend in recent weeks acknowledged genuine demand.
Is your portfolio green? Check the XRP Profit Calculator
The bullish scenario for XRP was a move right past the FVG to the psychological $0.5 mark over the next few days. Any higher targets can be unlikely, as XRP would likely need to pull back first. The resistance in late October built was built at $0.475, and was also a target for bulls to take profit alongside the $0.458 mark.
Meanwhile, a dip to the former range highs at $0.412 would likely provide a buying opportunity.
Do short liquidations fuel this rally?
While the OBV has risen in January, the spot CVD differed vastly. It has formed lower highs over the past ten days, which indicated selling pressure was greater.
At the same time, each move upward for XRP saw millions of dollars worth of short positions liquidated. The most recent spike on the 4-hour chart saw $1.56 million in short positions liquidated. More can follow and fuel a brief upward cascade.
Meanwhile, the Open Interest has trended upward alongside the price. This showed strong bullish sentiment in the market. Higher timeframe traders can wait for a retest of a strong support zone before entering long positions.