- The failed mid-range support over the past few days indicated that a move toward $0.5 or $0.46 was likely.
- A price bounce toward $0.6 might occur as prices search for liquidity.
Ripple [XRP] was unsuccessful in its attempts to reclaim the $0.585 support zone. A recent report noted that a breakout past $0.56 meant a move toward $0.64 was likely.
These bullish hopes were dashed when Bitcoin [BTC] slumped below the $60k level, dragging the altcoin market downward. Here’s what the next short and long-term targets for XRP are.
XRP bulls on the backfoot
Source: XRP/USDT on TradingView
The range formation (purple) has been in play for a year and reached from $0.46 to $0.71, with the mid-range level at $0.585.
In the past few days, this level and the 20-day moving average (yellow) acted as resistance.
The MACD showed a bearish crossover and indicated that the momentum was turning bearish in recent weeks. The low of the Bollinger band at $0.5 could be tested soon.
In the coming weeks, the mid-range rejection will likely solidify into a retest of the range lows once again.
Liquidity pools show XRP could see a bounce
Source: Hyblock
The liq levels delta was deeply negative and showed short positions were overwhelming. To counteract this and balance things out, a short squeeze or a price move upward was likely.
The $0.586 and $0.598 levels have the highest liquidity nearby.
Source: Hyblock Capital
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The 7-day lookback period highlighted $0.56 and $0.586 as the short-term liquidity clusters of interest. Whichever zone is tested first is likely to see a reversal to sweep the liquidity in the opposite direction.
Therefore, traders can expect some volatility. A move toward $0.6 would offer swing traders an opportunity to sell XRP, and $0.46-$0.5 would present a buying opportunity.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
