The new demand zone in the orange-marked region of XRP offers trading opportunities with a low risk/reward ratio.
Traders are watching for the price to retest the orange zone for potential long positions.
Spot holders may benefit from waiting for significant price turning points, such as double-digit ones.
XRP has recently shown decent price action, with a new demand level forming in the critical orange marked area. This new movement pattern has not been missed by day traders looking for a trade entry with a favorable risk-reward setup. While spot holders are currently unable to take much concrete action, the formation of this figure opens up some very potential trades in terms of price action.
Evolving Local Needs and Their Importance
The recently established orange zone is a local buyer demand zone where a buyer bounce is expected to help support XRP. These zones often play the role of important pivot points where traders can catch long entries in case of a retest. For those looking at a short-term target, it can be a good advantage to be aware of the price action.
Demand zones are a technical analysis element that recognizes buying interest in the market as an area of support. In this respect, the orange zone is well positioned to act as a buffer, offering investors a margin of protection if the price range falls further.
Possible Scenarios for Cautiously Optimistic Traders
Bearish investors are expecting price action (PA) to revisit the orange zone. These retests could confirm the zone as support and offer cheaper long entries into the bearish indicator. In an ideal world, prices would behave as expected within the zone’s boundaries, providing good evidence that the zone is a good place to start an upward move.
However, when it comes to spot holders, the concept of these setups is quite different from the use of short-term investors. From a long-term perspective, spot investors should continue to be patient with their investments and wait for the value penetration of levels from psychological barriers such as double-digit valuation benchmarks. Of course, the real question arises regarding the price dynamics more in the short-term perspective.