Original title: 3 Bullish Signs Point to an XRP Price Breakout
Original author:Victor Olanrewaju
Original source: https://beincrypto.com/
Compiled by: Mars Finance, Daisy
Brief Overview
XRP’s liquidation heatmap shows that there is high liquidity around $0.58, which suggests that the price may rise towards this level.
The MVRV long-term/short-term divergence turned positive, indicating that long-term holders may resist selling pressure.
XRP’s falling wedge pattern on the 4-hour chart suggests that the recent consolidation may be over and a rebound is possible.
The price of Ripple (XRP) could retest $0.58 after falling below it three days ago. This prediction is supported by multiple indicators that have historically proven to be key to the coin’s price action.
Currently, XRP is trading at $0.53, having lost 4.81% over the past week. However, it could erase these losses and climb higher.
High liquidity drives XRP price up
One indicator that supports the rise in XRP prices is the liquidation heat map, which predicts the price levels at which large liquidations may occur. In addition, the heat map helps traders understand the price points where there are large liquidity pools, providing traders with an advantage.
In most cases, if there is a high concentration of liquidity at a certain point, the price of that cryptocurrency is likely to move towards that area. According to Coinglass data, the weekly heat map shows that liquidity is highly concentrated at around $0.58.
The color of this level changes from purple to yellow, indicating that traders view it as a range for making favorable trades. Therefore, the price of XRP may gradually approach this area amid significant buying pressure.
