Is XRP Signaling a Stronger Price Rebound?
For weeks, XRP holders have been closely monitoring the market, frustrated by the coin’s restricted price movement. However, recent indicators suggest that the cryptocurrency might finally break free from its consolidation phase. Below, we analyze key signals that hint at a possible XRP price bounce.
Why XRP Traders Are Optimistic
XRP has been trading within a narrow range between $2.28 and $1.98 since late November, creating a feeling of stagnation in the market. However, recent developments have sparked renewed interest among traders and investors. Here’s what’s happening:
1. Symmetrical Triangle Pattern: Possible Price Aggression
XRP has touched the lower boundary of a symmetrical triangle—a chart pattern that forms when buyers and sellers slow down at the same rate. This often signals an imminent aggressive price move. Investors may consider this as the first strong indicator of a potential breakout.
2. On-Balance Volume (OBV): Hidden Accumulation Signals
Between December 6 and December 11, XRP’s price made a lower low while the OBV showed a higher low. OBV, a metric to measure the flow of volume in or out of a cryptocurrency, indicates hidden accumulation during this period. This divergence suggests that significant players might be taking advantage of the dips to accumulate XRP tokens.
3. Reduced Selling Pressure: Long- and Short-Term Holders React
Long-term holders, the most resilient group in the XRP ecosystem, reduced their selling rate significantly, from 101 million XRP (December 3) to 51 million XRP by December 10. Additionally, short-term holders, who typically create speculative supply and suppress momentum, have also started to exit the market. A clear reduction in speculative pressure is visible, signaling stronger market fundamentals.
XRP Price Targets and Risk Factors
Currently trading close to the $2.00 mark, XRP is still within the broader range of $2.28 to $1.98. For a sustained rebound, the cryptocurrency must clear the $2.17 resistance zone. A daily close above $2.17 could pave the way for testing the top range at $2.28 and beyond. Conversely, a daily close below $1.98 would compromise the bullish setup, opening the door for a drop to $1.88—a crucial support level.
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Disclaimer
This article is for informational purposes only and should not be viewed as financial or investment advice. Always conduct thorough research and consult with professionals before making any financial decisions. Remember, cryptocurrency investments are subject to market risks and volatility. Stay informed, and invest wisely!
