After carrying out a spectacular ascent, the XRP course stabilized under its ATH. Find Elyfe's analysis to decipher the technical perspectives of the XRP.
XRP course situation
After having benefited from a real expansion, the price of the XRP reached $ 2.90, its highest level since January 2018. It is at this level that cryptocurrency experienced a first consolidation, ultimately broken up, allowing in the XRP to reach a new summit at $ 3.40. Unfortunately, the overall drop in the crypto market did not allow cryptocurrency to reach its ATH, located slightly above $ 3.55.
Indeed, the XRP underwent a correction of 46 %, bringing its course to $ 1.80. Although this drop is worrying, the price is quickly returned above the $ 2 threshold. He then stabilized on the first pivot medium, located at $ 2.27, before bouncing again.
As these lines are written, the XRP is negotiated around $ 2.70. Although the cryptocurrency evolves below its monthly pivot point and its level of VWAP, aligned with its mobile average at 50 days, it should be noted that the short-term trend seems to go backwards, evolving above a significant value area. Regarding the medium and long term trends, they always remain upwards.
On the side of the dynamics of the XRP, there is a temporary weakening before a rebound, which testifies to an encouraging recovery. Nevertheless, a downward divergence is visible between the oscillators and the course of the XRP, pointing out a decreased momentum despite the increase in the price. This type of signal is often a precursor indicator of a lower reversal, unless a real buyer interest manifests.
Current technical analysis was carried out in collaboration with Elyfeinvestor and popularizer in the cryptocurrency market.
Zoom on XRP derivatives (XRP/USDT)
After observing a simultaneous drop in open interest and the underlying course, there is an outing of the positions on the market. However, for two weeks, this trend seems to have stabilized, which suggests market consolidation. This phenomenon can be interpreted as a sign that market players await a catalyst before resuming more active positions.
Although signs of emerging stabilization, the CVD continues to reflect a persistent downward trend, reflecting a predominance of selling orders, but with pressure that gradually tends to fade. This dynamic suggests a slowdown in the aggressiveness of the sellers, which can announce a breathlessness of the lower movement. A continuation of this stabilization, or even a reversal of the CVD, could point out a rebalancing between buyers and sellers, even a change of trend.
Since the last drop in the XRP, liquidations have remained limited on both sides of the market, without significant movements, neither for buyers nor for sellers. This situation reflects a stable market, contained volatility and prudent risk management. However, this balance remains temporary. A resumption of volatility is likely, in particular in the event of a sudden increase in volumes or the appearance of an external catalyst.
The thermal card of liquidations of the XRP/USDT contracts reveals that the cryptocurrency rebounded after entering into contact with the liquidation zone between $ 1.8 and $ 1.9, illustrating a notable request at this price level.
Now, the XRP course is below a liquidation zone between $ 2.8 and $ 2.9. A higher, we observe a more significant liquidation zone above $ 3.2, with a more marked level at $ 3.44.
Below the current course, a liquidation zone can be noted at $ 2.3. Lower, a subtle liquidation zone starts at $ 1.74 and covers up to $ 1.41.
The price approach to these levels could lead to a massive trigger of orders, thus increasing the risk of increased volatility for cryptocurrency. These areas therefore represent a crucial point of interest for investors.
Forecasts for the XRP course
- If the XRP price is maintained above $ 2.27, a crossing of $ 3.15 could be envisaged. The next resistance to monitor, in the event of continuation of the Haussier movement, would be the last summit identified at $ 3.40. Beyond that, the ATH of the XRP, located at $ 3.55, would constitute a key target, representing an increase of more than 31 %.
- On the other hand, if the XRP fails to maintain itself above $ 2.27, a return to $ 1.80 could be envisaged. In the event of continuation of the lower movement, the next support to consider is around $ 1.43, which would represent a drop of around 47 %.
Conclusion
XRP shows signs of recovery after a marked correction, but some indicators suggest a possible fragility of the Haussier movement. The trend remains generally positive, but a real return of the buyer interest will be decisive to confirm the continuation of the appreciation. In this context, it will be essential to closely monitor the reaction of prices at strategic levels in order to confirm or adjust current forecasts.
Finally, remember that these analyzes are based solely on technical criteria, and that the course of cryptocurrencies can evolve quickly according to other more fundamental factors.
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