XRP, the cryptocurrency associated with Ripple, has recently seen its lower timeframe market structure and momentum flip bearishly. Despite this, there is a chance of recovery for XRP. The coin has been rangebound for the past ten months, forming a smaller range over the past two months without showing signs of breaking out. However, technical indicators suggested a price bounce might occur from $0.514. Unfortunately, XRP fell by 14.6% on June 7, following a news-driven impulse move after bouncing by 10% from its lows.
The two-month range for XRP extended from $0.47 to $0.56, with the mid-range level at $0.514 serving as support earlier in the week. However, Friday’s Bitcoin crash dragged XRP down, flipping the lower timeframe structure bearishly. The On-Balance Volume (OBV) indicator has been on a downtrend since April, setting lower lows over the past ten days despite being above the short-term range’s mid-level. The Relative Strength Index (RSI) on the daily chart is also below neutral 50, indicating a continuing downtrend and the potential for XRP to drop to $0.45.
Despite the bearish signals from the price action chart and technical indicators, the liquidations chart suggests traders might want to counter-trade the downtrend. Liquidity pockets down to $0.45 have been swept, with the next large cluster of liquidity at $0.58, which is the mid-range level of the 10-month range. It is possible that XRP could surge towards $0.58 in June before seeing another rejection. This counterintuitive move may be supported by the liquidity levels in the market.
In conclusion, XRP is facing bearish pressures in the short term, but there is a chance of recovery and a potential surge towards $0.58 in the near future. Traders should closely monitor the technical indicators and liquidity levels to make informed decisions about their XRP holdings. It is important to conduct thorough research and seek professional advice before making any financial decisions related to cryptocurrencies like XRP.
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