XRP sets bearish tone: Should you short at THIS level?

• 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

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

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.

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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