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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 S is a Senior Journalist and Technical Analysis expert at AMBCrypto. He specializes in dissecting price action, identifying key market trends through advanced chart patterns, and forecasting both short-term and long-term asset trajectories. His distinct analytical method is grounded in his academic training as a Chemical Engineer. This background provides him with a systematic, process-oriented approach to market data, enabling him to analyze the complex dynamics of financial markets with precision and objectivity. Having actively covered the cryptocurrency space since the landmark 2017 market cycle, Akashnath possesses years of experience navigating both bull and bear markets. This seasoned perspective is critical to his insightful reporting on market volatility and evolution. As an active market participant, Akashnath enhances his analysis with crucial, hands-on experience. This practical application of his technical skills ensures his insights are not merely theoretical, but are also relevant and actionable for an audience looking to understand and navigate trading opportunities. He is dedicated to educating readers on the nuances of technical analysis, empowering them with the knowledge to make more informed financial decisions.
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