Pudgy Penguins denies OpenSea acquisition rumors – What’s happening?
- XRP seemed to have a short-term bearish outlook after the rejection at $3.2
- A retest of $2.95 can be anticipated, but a bullish reversal could ensue from the range lows
XRP formed a range between $2.95 and $3.23, with the mid-range level at $3.1. The XRP Ledger’s upgrade of the AMMClawback amendment for better regulatory compliance for AMM pools was a piece of good news for the network.
Now, while the token struggled on the price front, the buyers can be expected to defend the $2.9-$2.95 demand zone. In fact, in a recent analysis, AMBCrypto noted that the $3.2-level posed a serious threat to the bulls in the short-term.
This came true with a rejection from $3.15 on 30 January.
Will the December range formation of XRP repeat itself?
Source: XRP/USDT on TradingView
In early December, XRP saw a strong surge from $1.88 to $2.9. This was followed by a consolidation within a range with the lows at $2 and the highs at $2.62. The range lows were tested twice, one of them being a deviation below the low, before XRP began to trend upwards in earnest.
Therefore, it is possible that we see another retest of the lows and some consolidation around the mid-range level before the next move higher. A significant deviation below $2.95 had already occurred a week previously.
At the time of writing, the trading volume was low and a strong move cannot be expected over the next week or two. Reclamation of the mid-range level as support would offer a buying opportunity.
Source: Coinglass
The 1-month liquidation heatmap outlined the $3.2 and $3.45 levels as significant magnetic zones to the north. The price will likely be attracted to these regions, especially $3.45, where it could register a bearish reversal.
Source: Coinglass
Realistic or not, here’s XRP’s market cap in BTC’s terms
The past week’s liquidation heatmap outlined $3.2 as a short-term bullish target. A retest of the $2.95 demand zone would be a buy signal for XRP traders, targeting $3.2.
However, a drop below $2.9 would invalidate this bullish idea.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
