XRP price prediction – Another move south could be…
- 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.
The fair value gap overhead could pose a considerable threat
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
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.
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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.