Ripple [XRP] has long-term bullish prospects. After rising to $2, it formed a range trend, with bulls steadily accumulating.
XRP range formation and the next buying opportunity
Over the past month, XRP's trading range has been from $2 to $2.62. The midpoint of $2.31 has acted as both support and resistance, and as of this writing, this price level remains a resistance.
To the south, the reasonable value gap since the end of November is the next demand area where XRP may show a bullish reaction. Despite forming a range, the OBV has been slowly climbing over the past month.
This is an encouraging sight, indicating weak selling pressure. The RSI on the daily chart also remains above neutral 50, suggesting prevailing bullish momentum.
Returning to the range low or even the level of $1.9 would be a long-term buying opportunity.
Short-term liquidation fees are abundant.
The liquidation chart for the past month shows a large number of high leverage liquidation levels between $2.33 and $2.4. Cumulative liquidation leverage exceeding $2.4 has surpassed $2.21.
This means that moving north will lead to higher liquidation volumes.
In the past 24 hours, both open interest and spot CVD have significantly decreased. This is a result of the market sell-off pressure caused by the decline in Bitcoin [BTC]. The financing rate has also fallen.
Overall, short-term data shows that market sentiment is bearish.
The liquidation chart suggests that it is more likely to approach the range high in the coming days. Whether a breakout from the range will occur is still unclear.
Volatile traders must be prepared to profit in such trends and can look to re-enter in the $2.35 to $2.4 range as support during a retest.
The price target for XRP after the bullish flag breakout is $3.6.
In recent weeks, XRP's price has formed a bullish flag pattern, indicating potential for further upward movement. According to the chart, XRP is preparing to break this bullish flag on the daily time frame.
The bullish flag is widely regarded as a continuation pattern. It forms when the price of a cryptocurrency consolidates or experiences a pullback, signaling strong upward potential.
XRP is testing the upper boundary of a bullish flag pattern, aiming to break through that boundary and trigger the next round of price increases. If XRP successfully breaks through this bullish flag and maintains a price above that boundary, it could trigger an impressive increase of 50.22%.
The current trading price is $2.34. If XRP can rise 50% after breaking the bullish flag, its market price could surge to $3.3. This target is only 16.36% away from the $3.84 ATH that XRP reached during the last bull market in 2021.
Further solidifying his confidence in XRP's future price movement, he predicts that XRP's price will surge significantly to $3.66. In the short term, although speculative sentiment is bearish, it is expected to rise to $2.4 shortly. Over the past month, XRP has been accumulating within a certain range.
