- XRP was on the verge of a bullish shift in daily market structure at the time of writing.
- The price increase was likely driven by reports that the ruling would be handed down this month.
Ripple Over the past five days, XRP has risen an astounding 21.1% since the start of trading on July 8. The fact that this rally occurred after XRP had fallen below the low of its 11-month range indicates that this move was an aberration.
A recovery to the previous range means higher prices are now up for grabs. This change in sentiment is Anticipation of the verdict The lawsuit was filed by the U.S. Securities and Exchange Commission (SEC) against Ripple in July.
The rise above $0.45 surprised traders
XRP/USDT chart. Source: TradingView
The drop to the support of $0.41, a level tested in May 2023, meant that the long-term range had been broken and XRP was preparing to rise again. However, the reality turned out differently than expected.
The reversal above the $0.47 resistance means that bulls are waiting for a bounce. This deviation below the long-term range and a sharp rise in price is usually accompanied by a move to the other side of the range.
The OBV has broken out of the trendline resistance and the RSI has also crossed above the neutral level of 50. Together, these indicate strong buying pressure and bullish momentum. The intermediate level of $0.585 is likely to act as resistance for the next few days, but if this can be overcome, buyers can re-enter long positions.
XRP Rally May Stop Below $0.55
sauce: High Block
A drop below the low of the range usually results in a massive liquidity loss. This already happened during the price drop in April. The recent drop to $0.382 saw a massive liquidation of longs, indicating that holders began to panic and sell once the $0.46 support was broken.
Is your portfolio green? XRP Profit Calculator
After gathering this liquidity, it looks like the bulls are ready to make a reverse move on the price. The $0.538 liquidity pool is an attractive zone for XRP price. The $0.7 and $0.77 levels are also targets, but a flip to the resistance of the mid-range is required for the price to reach support.
However, the likelihood of this scenario could be hampered by a two-month range formation below $0.53.
Disclaimer: The information presented does not constitute financial, investment, trading or any other type of advice and consists solely of the opinions of the authors.
