Key Takeaways
XRP appeared to have formed a short-term range between $2.74 and $3.4. The liquidation heatmap showed that a price dip below $2.74 is likely before XRP can embark on a recovery.
Ripple [XRP] was falling toward the $2.7 support zone once again. Over the past month, the $3.4 level has turned into a key resistance level, while the $2.75-$2.85 area was becoming a strong demand zone.
This meant that XRP has formed a short-term range in recent weeks. Traders and investors should be aware of this development.
Traders can use this information to enter and exit swing positions. Investors would be hoping this consolidation gives bulls the strength to drive the next rally to new all-time highs.
Whales were selling XRP, and the $2.7 support might not hold if this selling continues. However, the liquidation heatmap offered some hope to the bulls.
Here’s why XRP might see a price rebound soon
Source: XRP/USDT on TradingView
After breaking out past the former range highs at $2.6 (purple), XRP rallied to an all-time high of $3.66 in July. Since then, the price has retraced to $2.7. It appeared to form a range over the past month.
The swing points on the daily chart at $3.66 and $2.74 were the ones to watch to understand the swing market structure. Within this, the internal structure has shifted multiple times in recent weeks. XRP’s structure was bearish at press time.
The DMI showed that the altcoin was in a strong bearish trend on the daily timeframe.
The MFI agreed with this finding after falling from the 50 level over the past week. The OBV also signaled bearish dominance in recent weeks with the indicator’s downtrend.
Source: CoinGlass
The 1-month liquidation heatmap revealed a liquidity cluster at $2.80, with a stronger zone between $2.63 and $2.68.
Given XRP’s recent bearish trend, a dip into these liquidity pockets appears likely. This area could trigger a bullish reaction as traders respond to concentrated buy-side interest.
However, Bitcoin [BTC] and Ethereum [ETH] trends must also be monitored. A deeper correction for the leading assets could turn market sentiment more bearish and hurt XRP’s chances at recovery.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion