Why $1.77 is Crucial for XRP’s Bullish Momentum
Ripple’s cryptocurrency XRP remains a hot topic in the digital asset space, especially as it hovers near strategic price levels that could define its near-term trajectory. As of now, XRP trades at $1.89 after falling below the psychological $2 support level. This dip was paralleled with Bitcoin’s drop below $90k, causing broader market volatility. Despite this, XRP still holds slightly above the yearly low of $1.81 recorded in January.
A Look at Market Dynamics
Recent reports suggest mixed market sentiments. Whale accumulation and positive signals from spot ETFs offer hope, yet the derivatives market is weighed down by risk-off sentiments. Technically, the $1.77 mark emerges as the critical swing low on the 3-day timeframe. Holding above this level will be instrumental for the bulls, as it prevents further downside momentum and keeps price action within a weekly demand zone.
The Chaikin Money Flow (CMF), which measures capital inflows and outflows, has remained below -0.05, reflecting steady selling pressure. Similarly, the Money Flow Index (MFI) struggles to rise above 50, indicating weak buying activity. Moreover, the recent retracement has not helped strengthen the bullish narrative, with consistent bearish signals in recent weeks.
Short Squeeze Potential and Recovery
The good news for XRP enthusiasts is the potential for recovery. A notable liquidation cluster exists around the $2 zone, which has already drawn XRP prices lower for liquidity purposes. With this liquidity sweep completed, XRP appears poised for a rebound. A short squeeze towards $2.05 in the coming days is likely if bulls can sustain increased demand. This could potentially trigger a rally similar to the one witnessed earlier this month when the internal structure turned bullish.
The liquidation map further reveals a sizeable amount of leverage in the $1.80-$1.77 region. If this support holds, XRP could enter a solid upward trajectory, provided that consistent buying interest follows.
How to Position Yourself
While the current market conditions reflect mixed signals, XRP investors might want to take a cautious yet optimistic approach in the coming weeks. For those looking to invest based on price movements, ensuring the $1.77 support remains intact will be pivotal for any upward momentum.
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Disclaimer: This content is for informational purposes only and should not be considered as financial, investment, or trading advice. Always conduct thorough research before investing in cryptocurrencies.
