Ever since the price of XRP surged above the crucial $1 threshold, market participants were optimistic about the upcoming price action. The price remained elevated and crossed $2.5 in the next few days, validating over 400% gains. The surge in price is believed to have been fueled by multiple reasons such as likely regulatory clarity, changing market sentiments, and a possible closure of the Ripple vs. SEC lawsuit. Moreover, the star token was leading the markets as the price surged above $100K and despite massive upward pressure, it marked highs above the range consistently for a few days.
What’s next for XRP’s price rally after the latest pullback? How long will it stay within the buy range below $2? Will it trigger a recovery and set new yearly highs?
Since the price broke out of the range, the token has attracted significant long and short liquidations, which have nullified its impact. Meanwhile, during the last trading day, the long liquidation marked the highs above $53 million, while the shorts were restricted to $13 million. This trend continued with over $12 million in long liquidations and $4.2 million in short liquidations, maintaining a bearish trend. The bears seem to have maintained a strong control over the rally and hence, the price is expected to test the local support soon.
The price continues to trade inside a strong ascending range, which has been acting as a strong support. After breaking out of the symmetrical triangle, the price has been constantly testing this support in the short term, indicating a decline in buyer strength. However, technicals suggest a short-term upside as the Stochastic RSI dips into the lower band, while the MACD indicates an increase in selling pressure, suggesting a drop below $2.
The levels around $1.98 appear to be a strong support zone, which should offer a good buying opportunity to re-enter with potential for upward momentum. Therefore, if the price holds this support, the next target could be $2.5 and higher, signaling a continuation of the uptrend. A break below the support indicates further downside, but the current trade setup suggests a likely bounce ahead with targets extended to $3.
