Key Takeaways
Altcoin’s price action and technical indicators supported the idea that pullbacks might be shallow, and a surge beyond $3 would arrive soon. In case of a pullback, the highs of the former range would be interesting for traders looking to buy XRP.
XRP managed to break out past the $2.6 resistance recently, a level that had kept the bulls in check since March. This breakout was on the back of high trading volume and accompanied Bitcoin’s [BTC] foray into uncharted waters. Naturally, the next target would be the psychological $3 resistance.
The altcoin tested this level on Monday, 14 July, but it was unable to immediately flip it to support. Rising whale accumulation meant that the large holders were convinced the price would climb even higher. Hence, it may only be a matter of time before XRP could climb higher.
News that the U.S. SEC approved the listing of the ProShares Ultra XRP ETF buoyed bullish sentiment too.
How should you prepare for the next XRP price move?
Source: XRP/USDT on TradingView
The 1-day chart underlined strong bullish momentum. The moving averages were far below the press time market price. The last time this happened was during November’s rally. For almost two months, the moving averages were unable to catch XRP’s price. If this continues, traders and investors can expect pullbacks to be shallow and rallies to be quick.
The CMF was above +0.05 to signal rising buying pressure. The A/D indicator agreed with this finding. Its uptrend since March hinted at accumulation, despite range-bound price action.
There was a fair value gap (white box) at the $2.6 zone, coinciding with the former range highs. AMBCrypto’s analysis of the liquidation heatmap found that this fair value gap may be an attractive price target.
The 2-week liquidation heatmap noted the dense pocket of liquidity just above $3. It might be an obvious short-term price target. Its proximity to the press time market price of $2.91 meant it was highly likely that XRP would advance to $3.04-$3.08 next. Once XRP gets past $3.1, the chances of further gains would be much higher.
To the south, the $2.61-$2.66 area was the magnetic zone of comparable size to the one around $3. In case of a retracement, buyers can expect a pullback to $2.6, the fair value gap, and former range highs. The Consumer Price Index (CPI) data also showed that inflation accelerated in June. This could hurt Bitcoin’s rally in the short term, affecting XRP bulls.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
