- XRP’s liquidation heatmap reveals two significant clusters of liquidity, indicating a strong support zone just below the current market prices.
- Despite the bullish sentiments within the XRP community, technical indicators suggest a potential drop below $0.5.
- While the momentum and buying pressure are fading, the $0.45 range lows could trigger a positive reaction.
As XRP’s liquidation heatmap uncovers key liquidity clusters, the crypto community anticipates a potential drop below $0.5, despite bullish sentiments.
Fading Momentum and Buying Pressure
Over the past nine months, Ripple’s XRP has traded within a range. However, the past six weeks have seen a shift in the asset’s performance. Despite an accumulation since September 2023, the momentum and buying pressure are fading. The On-Balance Volume (OBV) has trended higher and made higher lows since September 2023, but in April, this series of higher lows was broken, suggesting a looming higher timeframe OBV downtrend. The Relative Strength Index (RSI) on the daily chart has been below neutral 50 since mid-April, signaling a strong bearish price downtrend.
Key Liquidity Clusters
The liquidation heatmap reveals two key clusters of liquidity. The southward one, located at $0.45-$0.47, is much closer to current market prices. The $0.575 region is also a magnetic zone with a sizable concentration of liquidation levels. This data suggests that XRP is likely to revisit the $0.45 level due to the liquidity present there before climbing back toward $0.575. Therefore, the XRP price prediction is a move to $0.45 before a bullish reversal to $0.575.
Conclusion
While the XRP community remains hopeful for outsized gains during this run, technical indicators suggest a bearish bias. The fading momentum and buying pressure, coupled with the key liquidity clusters revealed by the liquidation heatmap, indicate a potential drop below $0.5. However, the $0.45 range lows could trigger a positive reaction, leading to a bullish reversal to $0.575.
