XRP broke above the $0.54 level and hinted at bullishness.
The momentum and buying volume were yet to show buyer strength.
Ripple [XRP] has trended downward in 2024, which was an anomaly amongst the large-cap crypto tokens. The price action of the past ten days showcased a possible shift in bias in favor of the buyers.
AMBCrypto reported earlier this month that a prominent CEO advocated for XRP, highlighting it as a source of substantial returns without being a major risk. Yet, analysis showed that in the short term, investors could protect their capital and exercise caution.
The bullish structure shift might be a trap
Source: XRP/USDT on TradingView
XRP broke a recent lower high at $0.54, which was highlighted in white above. This represented a bullish structure break on the daily chart. Yet, captured in red was the longer-term downtrend that XRP has been on since early January.
Coupled with the bulls’ inability to defend the 78.6% Fibonacci retracement level (pale yellow) at $0.5284, it was a sign that the respite of the past ten days was a temporary surge. The $0.57-$0.6 was a zone of resistance which likely has a massive number of sell orders.
The OBV was back at a level that has acted as support and resistance since last July. If it sinks below this level, it would be another sign of bearish dominance. The RSI was at 51, showing neutral momentum.
As things stand, the inference was that a move above $0.6 is needed to confirm a bullish bias.
Understanding key areas of interest from liquidity
Source: Hyblock
The liquidation levels heatmap from Hyblock provided valuable insights that aided AMBCrypto’s analysis. The two zones of interest for investors now are the $0.58-$0.6 resistance, and the $0.5-$0.515 support.
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The former was estimated to have over $2 billion in liquidations, and the latter to have just over $1 billion. Hence, a move into or just past these areas could be followed by a reversal.
Beyond $0.6, the $0.63 and $0.68 levels are also expected to serve as stiff resistances.
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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