Support and Resistance: What can #XRP's current moment teach us?
The history of XRP on Binance is a classic example of how the market moves. When the currency was listed, it peaked near 1.9669, establishing an important resistance. However, soon after, the price fell and spent a long period in decline, practically “dormant”.
After a while, XRP “resurrected” and retested the same level of 1.9669, which generated optimism among traders. Many believed in the definitive break of this resistance, but, as expected, the “whales” were attentive. They manipulated the market, pulling the price back down, looking for the stops placed by small traders (the famous sardines). This resulted in a perfect trap, forcing many to liquidate their positions.
After this strategic move, XRP exploded and reached 2.2, a new significant level.
And now, what to expect?
The market may be preparing for a new test, this time at the support around 1.969, where there is a large concentration of stops just below for those who were liquidated and tried to recover their losses again. As always, whales seek liquidity to continue moving the market in their favor. They know that a direct breakout would benefit many, and this goes against their interests.
If XRP tests this support and maintains strength, we may see new upward movements. But be careful: the market is full of traps, and quick movements are not always what they seem.
The lesson?
Understand the whales' game, do not be fooled by false setups. In a market where few win, strategy and patience are your greatest allies. XRP was cheap there, at around zero and a few cents on the dollar, now if you make a mistake, have money to make your average go down until the market moves in your direction again, XRP is already making some millionaires today, do not day trade, try a long position, do not use stop. And there?
