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Analysis

XRP price prediction – Another move south could be…

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XRP has a bearish market structure and an imbalance that could see further losses.
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XRP shows a bearish move could be imminent again
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  • The market structure has flipped bearishly.
  • The demand zone was close to being broken.

Ripple [XRP] witnessed a sharp decline in prices after Bitcoin [BTC] saw an intense wave of selling on 3rd January. This saw BTC shed 11.18% in a day, and XRP dropped as much as 21% before bouncing.

XRP saw an influx of funds to Exchange Traded Products (ETPs) according to CoinShares. AMBCrypto reported that retail interest behind XRP had also declined after the recent losses.

The fair value gap overhead could pose a considerable threat

XRP shows a bearish move could be imminent again

Source: XRP/USDT on TradingView

On the 12-hour chart, the market structure of XRP flipped bearishly during the fall. The move below $0.6 meant the higher low was broken. The drop was so swift that it also left a large imbalance from the $0.585-$0.611 area.

This region was marked in white. It is expected to serve as resistance should XRP attempt to bounce. The cyan box represented a bullish order block on the 12-hour chart from November.

It is close to being breached as a session close below $0.572 would flip this region to bearish control.

The RSI also reflected the downward momentum with a reading of 34. The OBV has trended downward since 11th December. The buyers’ attempts to recover saw the OBV ascend slightly from 18th December to 2nd January.

However, the recent selling volume appeared to put an end to this idea.

The liquidity pocket at $0.68 was a beacon of hope for the swing traders

XRP shows a bearish move could be imminent again

Source: Hyblock

AMBCrypto analyzed the liquidation heatmap from Hyblock. A large number of estimated liquidation levels congregated at $0.56. These were taken out by the recent move. A similar pocket sat in the $0.675-$0.685 region.

Is your portfolio green? Check the XRP Profit Calculator

If the bulls can defend the H12 demand zone, such a rally would become more credible.

However, XRP would need to breach the imbalance (white) and climb above $0.618 to give this scenario credence.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

 

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Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
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