XRP has been quietly consolidating for months while the broader market experienced wild swings. However, recent price action indicates that something may be brewing beneath the surface. The asset has been holding key support levels and showing signs of accumulation against both USDT and BTC pairs. Let’s delve into the technical analyses that might shed light on XRP’s potential future movements.
Technical Analysis
By ShayanMarkets
The USDT Pair
XRP/USDT continues to trade inside a descending channel, characterized by a pattern of lower highs and lows. This trend has been evident for some time, but recent price action has shown promise. Notably, the price swept the sell-side liquidity beneath the $2 threshold and then rebounded robustly. Currently, XRP/USDT is testing the 100-day moving average, which serves as a critical indicator for traders.
This liquidity sweep followed by a bounce could signify the exhaustion of bearish momentum, hinting at a possible shift in trend. The Relative Strength Index (RSI) is hovering around the 50 mark, reflecting a neutral bias in the market. However, reclaiming the 100 and 200-day moving averages in the $2.2 to $2.4 range could open the door for a potential breakout. For a full-fledged bullish trend to begin, it is essential for XRP to break cleanly above the upper trendline of the channel as well as the resistance zone at $3.
The BTC Pair
The XRP/BTC pair has been in a distinct downtrend within a descending channel since March. Presently, the price is nearing the lower boundary of this channel, which aligns with a significant fair value gap (FVG) around the 1,600–2,000 SAT range. Traders can anticipate this area to function as a robust demand zone, potentially reversing the downtrend.
The confluence of the fair value gap and channel support heightens the probability of a bullish reaction. Although the RSI remains below 50, indicating a bearish sentiment, it has recently shown signs of upward curvature, suggesting a possible deceleration in bearish momentum. A breakout from the channel paired with a reclaim of the 2,300 SAT resistance zone could spark a bullish continuation in the near term.
On the contrary, if XRP fails to hold the fair value gap zone and instead breaks lower, it is highly probable that the price could head towards the 1,500 SAT mark. In such a scenario, bears would regain control, leading to a further deterioration of the asset’s value.
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