Main navigation

XRP Delivers Hidden Bullish Signal

Advertisement
Sun, 4/02/2024 - 12:37
XRP Delivers Hidden Bullish Signal
Cover image via www.freepik.com

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News

XRP is currently exhibiting what could be a hidden bullish signal. This signal is not reflected in price movements or patterns on the chart but rather in the underlying market dynamics — specifically, a surging volume of liquidated XRP short orders.

Advertisement

As bears find themselves caught in a tight spot after even slight upticks in price, the potential for a liquidity squeeze in favor of bulls looms, setting the stage for a possible upward volatility surge.

Article image
XRP/USDT chart by TradingView

The recent market activity has seen bears scrambling to cover positions, indicating that the market may be underestimating the latent bullish sentiment among XRP investors. This scenario becomes particularly interesting as XRP's price teeters on crucial support and resistance levels observable in the provided price chart.

As we analyze the chart, we see that XRP has been testing a resistance level at approximately $0.5779, with a notable support base forming around $0.5386. Should the price break through this resistance level, bolstered by the squeeze on short sellers, we could witness an accelerated growth trajectory.

Related

The increase in buy orders necessary to cover short positions could fuel a rapid price increase, potentially pushing the price to test the next resistance level at the $0.60 mark.

The chart indicates that a bullish scenario is plausible, with the MACD showing a potential for a bullish crossover, and the RSI hovering around 41.66, suggesting that XRP is neither overbought or oversold. This neutral RSI position gives room for upside movement without immediate overbought concerns.

The growth scenario for XRP, grounded in the liquidation data, posits a ripple effect where a minor price increase triggers a cascade of short coverings, propelling the price upward.

Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles

Advertisement
AD