Ever since the XRP price has surged above the crucial threshold at $1, market participants have become optimistic about the next price action. The price remained elevated and surpassed $2.5 in the next few days, validating over 400% gains. The rise in the price is believed to have been fuelled by multiple reasons, like the probable regulatory clarity, the change in market sentiments and a potential close for the Ripple vs. SEC lawsuit. Besides, the star token was leading the markets as the price surged over $100K and despite massive upward pressure, it marked highs over the range constantly for a few days.
What’s next for the XRP price rally after the latest pullback? How long will it sustain within the buying range below $2? Will it trigger a rebound and mark new yearly highs?
Ever since the price broke out of the range, the token has attracted significant long and short liquidations, which have nullified their impact. Meanwhile, during the last trading day, the long liquidation marked the highs over $53 million while the shorts were restricted to $13 million. This trend has continued with over $12 million in long and $4.2 million in short liquidations, keeping up a bearish trend. The bears seem to have held a strong grip over the rally and hence the price is expected to test the local support soon.
The price continues to trade along a strong ascending range, which has been acting as a strong support. After breaking from the symmetric triangle, the price has been constantly testing this support in the short term, indicating a drop in the buyer’s strength. However, the technicals suggest a short-term upswing as the stochastic RSI drops to the lower range while the MACD indicates a rise in the selling pressure, suggesting a drop below $2.
The levels around $1.98 appear to be a strong support zone, which is expected to offer a good buying opportunity to re-enter with potential for upward momentum. Therefore, if the price holds at this support, the next target could be $2.5 and higher, signalling a continuation of the bullish trend. A break below the support indicates further downside but the current trade setup suggests a likely bounce ahead with the targets extended up to $3.
