XRP is likely to see another 9% rally; The reasons are very surprising

Warning: The information provided does not constitute financial, investment, trading or other types of advice and is solely the opinion of the author.

  • It is likely that the imbalance in the north will be renewed in the coming days.
  • A rally to $0.5 could occur, but the bulls can look to book profits along the way.

The XRP bulls have been constantly defending the $0.32-$0.33 range since the November crash. A retest of the same area in early January forced buyers above $0.35 on January 9th. This turned the lower time frame bias to the upside. A rally above the $0.37 mid-range mark followed shortly after, and XRP continued higher.

Read the XRP Price Prediction 2023-24

In the last few hours of trading, XRP managed to climb above the range high of $0.412 and managed to end the 4-hour session above the mentioned level. Bullish momentum is likely to pick up, and any dips to the $0.4 area could develop into buying opportunities.

The XRP bulls intend to break through the previous range highs, and the shortcomings of the north are still unrealized

Source: XRP / USDT on TradingView

The RSI broke above the neutral 50 mark as the price crossed the mid-range mark of $0.37 on January 11th. Since then, the price has rallied to a range high, refused to retest a bullish daily breakout, and at press time appeared to be on track to end the session above the two-month mark.

This was exciting news for the longer-term bulls and higher time frame traders. However, it was too early to call for targets like $0.55, the October high.

The true value gap is highlighted on the daily chart in white. XRP was likely to rally to $0.458 to fill this gap. The market structure has also been bullish, and the uptrend in OBV over the past few weeks has been acknowledging that there is real demand.

Is your wallet green? Check out our XRP profit calculator

The bullish scenario for XRP was a move after FVG to the psychological $0.5 level in the next few days. Any higher targets may be unlikely, as XRP is likely to fall first. Late October resistance was built at $0.475, which was also a target for the bulls to take profits along with the $0.458 mark.

In the meantime, a dip to the previous highs at $0.412 is likely to be a buying opportunity.

Are short liquidations supporting this rally?

Here's why XRP is likely to rise another 9%

Source: Coinalyze

While OBV rose in January, topical CVDs differed significantly. It has formed lower highs over the past 10 days, indicating that the selling pressure is greater.

At the same time, short positions were liquidated for every XRP upward movement of millions of dollars. The recent high on the 4-hour chart saw $1.56M clearing short positions. More may follow and it feeds a short chain up.

At the same time, the open interest trended upward along with the price. This showed strong bullish sentiment in the market. Higher time frame traders can wait for a retest of a strong support area before entering long positions.

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