Bitcoin’s recent bullish momentum has positioned XRP for potential gains, with key short liquidations around $2.46 acting as a pivotal factor in this market dynamic.
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XRP has exhibited bullish potential, although its trading volume has recently diminished.
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A dip to the range lows or slightly below may present an attractive buying opportunity for swing traders.
According to a recent report, XRP’s MVRV score remains neutral while its NVT metric is elevated. These seemingly contradictory indicators suggest that although the altcoin shows signs of aligning with historical accumulation phases, its network utility has not expanded at the same rate as its price.
XRP Positioned for Short-Term Breakthroughs Amid Bullish Trends
Source: XRP/USDT on TradingView
Following XRP’s breakout from the descending trendline resistance (white), the token has shown a solid uptrend, establishing consistent higher highs and higher lows since mid-April. The On-Balance Volume (OBV) has also been rising, indicating steady demand.
Momentum indicators reveal that XRP’s slow recovery has been supported by consistent buying interest. The moving averages indicate a bullish trend and establish dynamic support levels.
The MACD corroborates this bullish momentum, although it is nearing a bearish crossover above the zero line, suggesting a potential slowdown in price appreciation.
Critical Fibonacci retracement levels at $2.47 and $2.7 represent the next significant resistance points. This reveals that XRP’s apparent recovery over the past month might simply be a retracement ahead of another downward movement, as indicated by higher-timeframe analysis.
Source: XRP/USDT on TradingView
The 4-hour chart presents a trading range from $2.3 to $2.44. Recently, the range high has deterred bullish momentum, while the mid-range level at $2.37 has proven to be a robust support area. It is likely that XRP may continue to oscillate within these bounds in the near term.
Additionally, it is noteworthy that Bitcoin’s upward momentum could enhance XRP’s price potential. Recently, BTC surpassed the $104.8k short-term resistance, indicating a positive shift. Nevertheless, low trading volume signals that many traders are awaiting a significant volume-driven move before taking action.
Source: Coinglass
The two-week liquidation heatmap indicates a significant zone beneath the current range lows, particularly at $2.26, which could draw market activity. However, XRP’s ability to stay above the $2.37 level presents a critical near-term support level.
The positive momentum from Bitcoin may catalyze an increase in XRP prices, particularly as short liquidations around $2.46 could further drive gains. Traders should remain vigilant for either outcome, with the prevailing outlook suggesting a favorable bullish trend.
Conclusion
In summary, after breaking key resistance levels, XRP’s trajectory appears influenced by macro market movements, particularly Bitcoin’s momentum. Traders should monitor critical price levels around $2.37 and $2.46 while being prepared for potential fluctuations. As the crypto environment evolves, emerging trends and market behavior will provide clarity on XRP’s next movements.
