XRP prices continue to trend south, another 8% drop coming?

  • XRP was in a clear downtrend on the 12-hour chart.
  • The liquidity below $0.5 could be swept before a reversal.

Ripple [XRP] has not broken the downtrend that it embarked on back in early January. The price chart showed a series of lower highs and lower lows registered over the past month.

AMBCrypto’s technical analysis has proven right so far.

The $0.53-$0.55 area was expected to rebuff the buyers’ attempts, and this came true on the 30th of January.

In other news, Ripple was hacked and tokens worth $112 million were laundered through various exchanges. However, with the help of the XRP Ledger Foundation, some funds were frozen.

The bearish dominance is here to stay

Apart from the market structure, the RSI and OBV were also in a downtrend. This showed bearish momentum and steady selling volume. The indicators pointed toward another drop in prices.

Source: XRP/USDT on TradingView

The 12-hour price action chart showed that the $0.5 region has served as support since early January.

On the 31st of January, XRP dropped to $0.485 but rebounded to retest the $0.53 resistance zone on the 3rd of February.

The price was rejected there and fell to $0.505 at press time. To the south, the $0.46 support zone presented an attractive buying opportunity, with a take-profit target of $0.5.

Yet, the trend remained bearish, and the $0.54 was the recent lower high that XRP needed to breach to flip the structure.

Liquidity was more plentiful in the north

XRP continues to trend downward, another 8% drop projected

Source: Hyblock

AMBCrypto analyzed the XRP liquidation heatmap to understand the path of least resistance. To the north, the $0.54 and $0.56 regions have $750 million in estimated liquidation levels.

The path to these levels was relatively clear, with the $0.531 area being another place that XRP could reverse.

Meanwhile, the $0.48 and $0.46 levels had $400 million and $350 million in estimated liquidation levels.

How much are 1, 10, or 100 XRP worth today?

Their proximity to the current price meant a sweep of these levels before a reversal to shake out the short sellers was a potentially viable path over the next month.

The trend of Bitcoin [BTC] could also affect XRP’s price action significantly.

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

Previous: Bitcoin Halving 2024: How Bitcoin’s next halving will shape the crypto industry?
Next: Shiba Inu flashes bullish signal: All you need to know

Source link

About The Author

Scroll to Top