- The failed mid-range support of the past few days suggested that a move towards $0.5 or $0.46 was likely.
- As prices look for liquidity, there could be a price increase towards $0.6.
Ripple (XRP) has been unsuccessful in its attempts to reclaim the $0.585 support zone, with a recent report noting that a breakout above $0.56 will likely result in a move towards $0.64.
Those optimistic hopes were dashed when Bitcoin (BTC) fell below the $60,000 mark, dragging the altcoin market lower. Here are the next short- and long-term targets for XRP.
XRP bulls on the retreat
Source: XRP/USDT on TradingView
The range formation (purple) has been in place for a year and ranges from $0.46 to $0.71, with the middle level at $0.585.
In recent days, this level and the 20-day average (yellow) have acted as resistance.
The MACD showed a bearish crossover, suggesting that momentum has turned bearish in recent weeks and the Bollinger Band low at $0.5 may be tested soon.
In the coming weeks, the rejection in the middle range is likely to solidify and lead to another test of the range lows.
Liquidity pools show that XRP could see a rebound
Source: Hyblock
The delta of the liquidity level was strongly negative, showing that short positions were overwhelming. To counteract this and balance things out, a short squeeze or price move higher was likely possible.
The $0.586 and $0.598 levels have the highest liquidity nearby.
Source: Hyblock Capital
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The 7-day lookback period highlighted $0.56 and $0.586 as short-term liquidity clusters of interest. Whichever zone is tested first, there will likely be a reversal that sends liquidity flowing in the opposite direction.
Therefore, traders can expect some volatility. A move towards $0.6 would provide swing traders with an opportunity to sell XRP, and $0.46-0.5 would represent a buying opportunity.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and reflects solely the opinion of the author.
