- XRP, at press time, was on the verge of shifting its daily market structure bullishly
- News of a ruling expected this month likely drove the price gains
XRP rallied by an astonishing 21.1% over the last five days, measured from 08 July’s daily session open. The fact that this came after XRP fell below an 11-month range low indicates the move was a deviation.
The resurgence into the former range meant that the highs are now up for grabs. This change in sentiment might be because of expectations of a ruling in July in the U.S Securities and Exchanges Commission’s (SEC) lawsuit against Ripple.
Resurgence above $0.45 caught traders off-guard
Source: XRP/USDT on TradingView
The drop to the $0.41 support, a level previously tested in May 2023, meant that the long-term range was broken and XRP was preparing for another move north. However, the reality differed from expectations.
The reversal above the $0.47 resistance meant that bulls were raring for a rally. A move to the opposite end of the range usually accompanies this deviation below a long-term range and price surge.
The OBV broke its trendline resistance and the RSI also jumped past neutral 50. Together, they showed strong buying pressure and bullish momentum. The mid-range level at $0.585 will likely be a resistance in the coming days, but if it is overcome, buyers can re-enter long positions.
Likelihood of XRP’s rally halting before $0.55
Source: Hyblock
The deviation below the range low usually takes out a large cluster of liquidity. This was already accomplished during the April price drop. The recent one to $0.382 caused long liquidations galore. It showed holders were panicked enough to start selling once the $0.46 support gave way.
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After collecting this liquidity, the bulls seemed prepared to send prices the other way. The liquidity pool at $0.538 is a magnetic zone for XRP prices. The $0.7 and $0.77 levels are also targets, but the mid-range resistance must be flipped to support.
However, the likelihood of this scenario might be impeded by the two-month range formation below $0.53.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
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