XRP prepares for $0.6 breach, but when?
Analysis of the liquidation heatmap showed a key resistance level at $0.595.
- XRP has formed a lower timeframe range.
- A breakout past $0.6 would not guarantee a continued uptrend.
Ripple [XRP] saw a bullish structure break twelve days ago but was yet to break the $0.57-$0.6 resistance zone.
AMBCrypto reported that a move toward $0.65 might be brewing, despite a lukewarm sentiment behind the token.
In other news, the Chief Technical Officer (CTO) of Ripple, David Schwartz, had some comments regarding Automated Market Makers (AMMs) and their effects on XRP volatility.
Will the bulls force a follow-through on the structure break?
The market structure break on the one-day chart was highlighted in white. Despite that, over the past two weeks, XRP has traded within a short-term range that extended from $0.528 to $0.573.
The RSI was above neutral 50 and, alongside the structure, favored the bullish argument. The OBV also noted a bounce from a level that acted as resistance a month ago.
This was a positive sign, and the influx of buying volume could see prices break the $0.6 resistance.
The Fibonacci retracement levels (pale yellow) showed that the $0.52-$0.57 region was important, but it was breached in mid-January.
Therefore, until the XRP bulls manage to drive prices beyond $0.63, a bearish outlook remains valid.
Marking the XRP resistance zones to the north
AMBCrypto’s analysis of the liquidation heatmap data showed that the $0.505 and the $0.594 levels were significant.
According to Hyblock estimates, a move to these levels would trigger liquidations worth $2.7 billion and $2.4 billion, respectively.
How much are 1, 10, or 100 XRP worth today?
Beyond $0.594, the $0.616, $0.627, and $0.649 levels had $1.3 billion to $1.5 billion in estimated liquidations. The inference was that a rally for XRP was possible, but heavy resistance was overhead.
On the other hand, if these levels were breached, their liquidations could see prices rocket to the $0.68 level before a rejection.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
