XRP’s price is now entangled with a crucial resistance bubble following the 8.7% run on Monday. This puts the OG altcoin at a $1.49 price tag, the lower boundary of a resistance channel recently pointed out by Egrag Crypto in a support & resistance-based XRP price analysis.
The Frenchman indicated a confluent resistance area between $1.49 to $1.54, something XRP’s price is potentially tackling in the near-term. Break this, convert it into a fresh support level, and then the Egrag’s white line trend activates, pushing XRP towards $1.64. Once that clears, $2 becomes the next target.
Two Most Plausible Scenarios For XRP Revealed
In this case, XRP would repeat the mid-August top candle, reaching between $1.65 to $1.70 during the run, according to multiple different crypto price aggregators. Conversely, if XRP’s price fails to sustain itself above the resistance zone between $1.49 to $1.54, there’s a huge downwards chop possibility from $1.30 to $1.10, Egrag Crypto notes.
The white arrows in the analyst’s chart project four previous rejections at that territory, so there’s two liquidity pockets at $1.05 and $0.97 if XRP falls into a ‘bull trap’. That usually means quick price rallies that get reversed in days, usually followed by an indication of slow trading volume. However, that’s not the case with XRP on Monday, with Derivatives edging out Spot markets.
Liquidity Piles Up On Derivatives With 22% Uptick
Traders on Spot have garnered $3.8 billion in daily trading volume, judging from SoSoValue’s data. The bigger tell is Derivatives: the 22% daily upswing in trading volume has pushed it beyond $5.39 billion, with Open Interest (OI) also soaring by 12% to reach $3.42 billion, per CoinGlass’ stats. Short-sellers have incurred $9.93 million in liquidations with bulls at $1.59M.
If XRP’s bulls push the price above $1.54, then $1.64 – $1.70 is the next resistance bubble to watch. Analysts are setting expectations on a $2 XRP price rally in the near-term, but most of today’s market gains are directly tied to BTC price correlation. XRP and major-cap altcoins are riding along the bullish wave as the apex asset crosses $84,000 for the first time since January.
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