XRP Nears Critical Support Level: What’s next?
XRP is nearing a crucial support zone around $2. this level has been a strong base for months, preventing deeper price drops. The market’s reaction here will decide if XRP continues it’s bullish trend or faces a deeper correction.
Price action is cyclical. XRP has moved from its high value area down to the low, creating a typical auction cycle. This movement,along wiht decreasing volume,frequently enough signals upcoming volatility. If the market confirms support and volume rises, it could signal a new upward trend.
- $2 support Zone: A key area where the 0.618 Fibonacci retracement and value area low meet,making it a strong demand zone.
- liquidity Below $2: Resting liquidity suggests a potential sweep before a reversal, a tactic used by market makers.
- Falling Wedge Pattern: A bullish formation that could push XRP to $4.25 if it breaks out.
One critical point is XRP’s defense of the $1.59 swing low. If this level breaks, it could signal a shift in the bullish structure. Though, if it holds and is followed by strong volume, it could propel XRP higher.
From a market profile view, XRP’s recent price action has completed a full rotation, from $3.10 down to $2. This reset ofen acts as a springboard in trending markets. The falling wedge structure adds to the potential for a breakout.
On lower time frames,XRP shows a sequence of higher lows,suggesting traders are positioning stops below $2. This could create a liquidity pocket, wich market makers might sweep to trigger a reversal. A sharp drop below $2 followed by a swift reclaim on higher volume would be a bullish sign.
The falling wedge pattern, if broken, could send XRP to $2.42 initially, then $3, with a full move targeting $4.25. For now, all signs suggest a significant move higher is possible if bulls hold the $1.59 level and reclaim $2 support.
