XRP Hits $2.40 - Will the Rally Continue or Reverse?

XRP surges past $2.40 - traders hold their breath for the next big move.

Technical Tensions Mount

The digital asset rockets to $2.40, leaving investors scrambling to predict the next price swing. Market sentiment splits between bulls eyeing new highs and bears watching for correction signals.

Volume spikes as institutional money flows in - or is that just retail FOMO fueling the fire?

Regulatory clouds still loom despite recent legal clarity. Because nothing says 'stable investment' like courtroom drama determining your portfolio's fate.

Chart patterns suggest either breakout continuation or sharp pullback - because technical analysis is basically financial astrology with better graphics.

Will XRP ride the momentum to $3 or tumble back to reality? The market's waiting - and so are your unrealized gains.

Key Takeaways

What was the significance of the $2.7 area on the price chart?

Analysis showed that it has been a key support since August. The build-up of short liquidation levels meant it could be retested before the next bearish move.

What would convince swing traders to lean bullishly?

If the $2.8 area is reclaimed as a demand zone, it WOULD show traders that buyers were strong enough to attempt a recovery past $3.

Ripple [XRP] was trading at the $2.42 mark at the time of writing, and signaled bearish momentum in the short-term. Sellers had the upper hand for now and could force a price MOVE toward the psychological $2 support.

Technical analysis shows XRP could see a 22% price drop

The swing points on the weekly timeframe were marked in green, at $0.486 and $3.4.

The rally from $1.61 to $3.66 that began in April meant that the weekly structure was bullish, making it the long-term outlook for XRP. A move below $1.6 would be needed to shift the swing structure bearishly.

Source: XRP/USDT on TradingView

The daily chart above showed a bearish structure. The internal structure’s local high and low are marked in orange at $3.1 and $2.7. The swing structure was bullish, due to the rally from $1.9 to $3.66 in June and July.

However, the bias for now is bearish. This is because XRP bulls had defended the $2.7-$2.8 demand zone from bearish retests since July, but the recent selling pressure forced the price to break down beneath this support.

This breakdown left behind a large imbalance, highlighted by the WHITE box. This zone, from $2.5-$2.77, represented a sturdy obstacle for the buyers.

The Moving Averages were bearish, as was the Awesome Oscillator. However, the CMF has climbed to +0.05, at press time, a sign of significant buying pressure. This buying would likely be insufficient to drive prices to $2.8 and beyond.

The current bearish structure means that an xrp price drop to $1.9 and $1.6 is likely. A daily session close below $2.28 would increase the chances of the expected 22% price drop.

What impact could the liquidation levels overhead have on XRP?

Source: CoinGlass

The imbalance underneath the $2.8 area has extra significance. The liquidation heatmap showed a cluster of short liquidation levels built up at $2.67. This magnetic zone is likely to pull XRP to $2.7 in the coming days.

Given the bearish internal structure and the $2.7 supply zone, any bounce is likely to trigger a renewed downward price move. However, Bitcoin [BTC] could also have an impact on XRP trends.

A bitcoin rally beyond $117k would indicate bullish strength, and XRP traders can anticipate a recovery above $3.1.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion