Ripple’s XRP is currently down by more than three percent and is retesting levels below the $2.50 mark. The price hit a low of $2.36 in the last 24 hours and is now eyeing to break above the $2.50 and $2.70 levels. These levels have provided strong support for XRP’s price in the past. On February 3, XRP hit the $1.95 levels. However, it has now bounced back and has recovered. In the last seven days, XRP has declined by more than 22%.
Understanding The Microstructure
On a smaller time frame, XRP’s price movement since February 3rd shows a potential impulsive move upward. Although the typical five-wave pattern isn’t clearly visible, this could be due to the rapid sell-off followed by a quick recovery. The microstructure analysis remains uncertain, but key support levels between $1.95 and $2.35 are critical to watch.
If the price breaks below $1.95, a downward trend may occur. However, if the price breaks above the trendline and $2.57, it would signal a possible recovery towards the $3.40 breakout point. However, caution is advised as rapid downside moves are also possible, typical of third waves in trends.
Important Support Level To Watch:
The XRP chart continues to show a bullish structure, as long as the price holds above the $1.20 level. This key support has recently been tested, following a sharp sell-off in the altcoin sector, which often results in quick price movements. If XRP remains above this $1.20 threshold, the next targets for upside price action could be around the $4.20, $5, and $6.60 levels.
Credit: Source link