The popular remittance altcoin Ripple (XRP) continues to trade in range-bound mode, but the $2 level is coming sooner than the long-term target of $20. In the latest technical analysis by Chart Nerd, the deep liquidity pocket at $2 is expected to determine the near-term momentum.
Big Test: XRP Dives Into Liquidity Pocket
To back it up, the seasoned trader relies on the Stochastic Relative Strength Index (StochRSI), currently in oversold mode, meaning that the asset is under-valued against the market in theory. Paired with the bullish crossover on MACD, a wider rebound rally could be next, says Chart Nerd.
“We may stick inside this channel until the $2 liquidity pocket is tapped”, – said the analyst as XRP’s price was trading just above $2.07. Since then, the markets saw a medium pull-back on Friday, with Bitcoin (BTC) retreating back to $95K. However, the markets remained mostly calm as crypto’s Fear & Greed Index turned to ‘greed’ levels for the first time in half a year.
XRP’s Wave 4 Bottom Sets $20 Price Goal
Meanwhile, other technical analysts paint a bright picture for Ripple’s (XRP) price appreciation. In Egrag Crypto’s point of view, XRP is poised for a double-digit run once the Wave 4 activates – basing it all on the Elliott Wave theory. To solidify their thesis, ‘Y’ showcases a set of green & white circles that have built a logical structure over the years, printing higher lows on each cycle.
Hence, while market connoisseurs may find the $20 XRP price target outrageously optimistic, the technical back-up is there. Now, the fourth wave is expected to take the XRP’s price on a ‘classic bullish corrective consolidation’, the analyst noted while drawing attention to the break of 21-EMA zone, highlighted in yellow.
With most of the major-caps back-tracking on Friday evening, XRP’s ability to stay above the psychological support level of $2 will be decisive, as it falls in line with the liquidity pocket mentioned by Chart Nerd. As of press time, XRP, the #4 ranked asset by market capitalization stood at $2.04, dipping by 2.31% in 24 hours.
On The Flipside
- XRP’s bulls have been battered by short-sellers on leveraged markets, implying excessive optimism that leads to liquidation.
- Long positions on XRP’s price accounted for $8.70 million out of $8.89 million in 24-hour liquidations, says CoinGlass data.
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People Also Ask:
Per Egrag Crypto’s price chart, XRP is entering Wave 4 and hitting a liquidity pocket averaged at $8.33–$41.2, equaling $20.50. This zone acts as a support/resistance area where price often bounces or reverses.
Wave 4 in Elliott Wave theory is the corrective phase before the final Wave 5 impulse. Therefore, XRP bottoming in this liquidity pocket suggests accumulation before a major upside leg.
Break above $2.34 resistance could target $20.50 as the following Wave 5 high, based on measured moves and historical patterns
Yes, if it holds the pocket and breaks higher—signals end of correction and start of new impulse. However, failure could lead to deeper Wave 4 lows around $0.332–$0.387.
Broader market dumps or low volume on breakout could invalidate the setup. Thus, confirmation above $2.34 with strong buying is crucial before big positions.
