- XRP may not achieve a record rally in the coming weeks.
- Traders and investors may watch out for a retest of the HTF resistance zone.
Ripple (XRP) has a bullish market structure once again on the 12-hour chart. However, despite the bullish sentiment across the cryptocurrency market, XRP was unable to break the seven-month range it had been trying to reach.
AMBCrypto previously reported that whales had withdrawn 18 million XRP tokens from centralized exchange Binance (BNB).
The event highlighted that despite Bitcoin (BTC) performing much better in recent months, large players are still looking to accumulate.
XRP is heading for its next high
Source: XRP/USDT on TradingView
A move above the $0.624 level occurred on March 2, demonstrating a bullish market structure. Since then, XRP has risen to $0.6685 before falling into the $0.52-$0.54 interest zone (turquoise box).
This shows that despite the decline, the price is trending upward at press time.
XRP has been trading within a range (purple), with $0.45-$0.48 being the demand zone for higher periods and $0.7-$0.74 being the resistance zone.
RSI was 55, indicating weak bullish momentum, but structurally, further rise was expected.
However, OBV failed to cross the 2024 resistance line. This is because although the indicator is trending upward, there has not been a lot of recent purchasing volume.
Therefore, another decline into the $0.54 region was possible, especially if Bitcoin falls below the $66,000 level.
Where is the next pocket of liquidity?
Source: Hiblock
Prices gravitate toward areas with the most liquidity. At press time, the liquidation level at $0.69 was estimated at $5.2B.
Liquidation in the $0.65 region is $1.3 billion, according to Hyblock data.
How much is 1,10,100 XRP worth today?
Therefore, XRP is likely to reach the $0.7 resistance in the coming days. However, after all of this liquidity is used up, there is a high possibility that the price will fall to the $0.5 level in search of liquidity.
A break above $0.7-$0.74 and defense as a demand zone would encourage investors.
Disclaimer: The information presented does not constitute financial, investment, trading, or any other type of advice and is solely the opinion of the author.