After multiple days of trading sideways, XRP is finally back to the bullish zone as its price has continued to witness a rapid increase since the last day.
While XRP has remained on the bullish side till today, climbing more than 4% over the past 24 hours, on-chain data provided by popular crypto analyst Ali Martinez suggests the rally could face a critical test if momentum fades.
XRP risks retesting $1.77
The analyst shared data from Glassnode revealing that a large amount of XRP was accumulated around the $1.77 level, making it a key support zone.
Apparently, the $1.77 level marks the area where many holders last moved their tokens, making it act as a strong defense zone during periods of price pullbacks.
Nonetheless, the chart showcased by Ali pointed at a thin liquidity zone below $1.77. This suggests the amount of XRP accumulated in this area is limited compared to the next major support zone near $0.79.
While it is not certain how long XRP will be able to hold the current price rally, the data suggests that if XRP fails to hold above $1.77 and the current rally proves short-lived, selling pressure could increase rapidly, opening the door for a deeper correction toward the $0.79 level.
However, it is important to note that the bullish momentum remains intact for now, with XRP trading near the crucial $2 level following the renewed market optimism.
As such, a sustained move higher could reinforce confidence and attract fresh inflows, pushing the price back to the much-anticipated $2.50.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team