- XRP has gained over 10%, with its price trading at $2.35.
- The market saw a $14.15 million liquidation of XRP.
With the new year underway, anticipation of a bull run has analysts closely examining assets with promising patterns. Turning attention to the altcoins, Ripple’s XRP has been stuck in a prolonged consolidation, wrestling to reach the $3 mark.
Notably, XRP has begun recovering from the previous price levels, and it chose to trade on the upside. The altcoin has gained over 10.35%, visiting its daily high of $2.44. At the time of writing, the asset trades at $2.35. The bullish momentum could propel it to move even higher.
Furthermore, a $14.15 million liquidation of XRP was observed in the market during this timeframe, as per Coinglass. Also noting its daily trading volume resting at $10.48 billion.
On the other hand, John E. Deaton has noted that despite being the third-largest cryptocurrency by market cap, XRP has been overlooked. In addition, he expressed his opinion that XRP was one of the few cryptocurrencies to finish December trading in the green, showing resilience and positive momentum amid market fluctuations.
Will XRP Momentum Hold Strong?
The four-hour price movement of XRP unveiled the bullish outlook. If the resistance at $2.44 is tested and broken, the altcoin price could trigger an upward momentum, targeting the $2.50 mark. Assuming the uptrend gains further strength, the price might climb high for a strong bullish phase.
On the downside, if XRP’s positive trend reverses, the price may lose crucial support and test $2.34. A failure to hold this trading level could push the price down to $2.28 or even lower. This pattern will likely mark a significant decline in XRP price.
The technical chart analysis of XRP exposes the Moving Average Convergence Divergence (MACD) line settled above the signal line. This crossover indicates a potential upward price movement and signals an entry point for long positions.
XRP chart (Source: TradingView)
Moreover, the Chaikin Money Flow (CMF) indicator is 0.22, inferring a positive money flow and bringing strong buying pressure to the market. Meanwhile, the asset’s trading volume has surged by over 122%.
The 24-hour trading window of the altcoin reveals the short-term 9-day moving average above the long-term 21-day moving average. Besides, XRP’s daily relative strength index (RSI) is 68.18, suggesting the asset is approaching the overbought zone.
Disclaimer: The opinion expressed in this article is solely the author’s. It does not represent any investment advice. TheNewsCrypto team encourages all to do their own research before investing.
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