Ripple [XRP] fell 4.62% in the past 24 hours, following Bitcoin’s price drop below the $94.5k local support. This dip resulted in $40.74 million in liquidations, with $39.50 million being long liquidations.
In a recent report, AMBCrypto showed that the $1.96-$2.0 was a key support zone for the bulls.
This was due to the Cost Basis Distribution Heatmap, as well as the technical importance of this area in the past two months.
The volatility of the past few hours saw XRP retest this area. Should traders expect a strong rally from here?
XRP price prediction – THIS chart gives a warning
Source: XRP/USDT on TradingView
On the weekly timeframe, XRP has a bullish swing structure but a bearish internal one.
Additionally, it was below the 78.6% Fibonacci retracement level as well. The OBV has been trending lower since September, and the MACD was below the zero line to show momentum was firmly downward on this timeframe.
Together, it signaled that the bears had the upper hand.
At the same time, XRP was trading within a demand zone that it has defended since December 2024. This fact made it an attractive prospect for buyers, with relatively low risk and higher rewards in case of a market rebound.
The flurry of liquidations might have served as a liquidity sweep, setting up conditions for a local bottom.
Traders’ call to action- Buy the sell-off
Source: XRP/USDT on TradingView
The breakout past $2.28 (cyan line) marked a bullish flip in the structures on the 4-hour and 1-day timeframes. The Fibonacci retracement levels showed that $2.01 and $1.90 were local supports, and within the year-long demand zone that XRP bulls have defended so far.
Therefore, traders can look to buy XRP between $1.90-$2.01.
A price drop below $1.81 would be an early sign that bulls were in trouble, and a session close below $1.77 would invalidate the idea.
The take-profit targets were $2.30-$2.40 and $2.55-$2.60. Bitcoin’s reaction at $101k and $107.5k would also influence XRP sentiment.
In other news, Ripple announced it received licensing approval from Luxembourg’s financial regulator. This is a key step toward scaling Ripple Payments across the EU.
Final Thoughts
- The short-term XRP volatility could see the price remain below $2 over the next 24 hours.
- This was a buying opportunity for bulls, and the $1.81 and $1.77 swing lows can be used to inform bulls if their setup is invalidated.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
Source: https://ambcrypto.com/xrp-price-prediction-will-40mln-in-liquidations-spark-a-rebound/
