XRP Signals: What’s Next After Flash Crash?

What to Know:

• XRP experienced a price crash, reflecting broader market weakness and a failure to sustain upward momentum.
• The current market structure indicates ongoing consolidation within a defined range, influenced by supply and demand zones.
• XRP’s inability to break key resistance levels may impact short-term volatility and liquidity sweeps.

XRP, like much of the crypto market, has recently experienced a notable price correction, underscoring persistent vulnerabilities within its existing downtrend. Multiple attempts to rally have failed, highlighting a lack of sustained bullish strength. XRP is currently trading within a clearly defined range, and the direction of its next major move hinges on a decisive breakout.

Daily Chart Analysis

On the daily chart, XRP’s recent attempt to breach the $1.60 mark, the middle boundary of its current channel, was unsuccessful. This brief surge beyond the midline triggered a liquidity sweep, where buy orders were filled before sellers regained control and pushed the price lower. This false breakout underscores the presence of significant overhead supply, suggesting that bullish momentum remains fragile.

Following this rejection, XRP’s price has reverted to its established range, fluctuating between upper supply and lower demand zones. The current market structure points toward continued consolidation rather than an imminent trend reversal. Unless XRP can decisively reclaim and maintain a position above the channel’s middle boundary, the market is likely to remain range-bound, with liquidity hunts on both sides contributing to short-term volatility.

4-Hour Chart Assessment

The 4-hour chart reveals that XRP remains structurally bearish, trading within a well-defined descending channel. Following the failed breakout and subsequent liquidity sweep, the price resumed its downward trajectory, forming lower highs and lower lows within the channel’s boundaries.

The recent bounce from the demand zone near the $1.10–$1.20 range was sharp but appears to be corrective. XRP is currently consolidating around the $1.35–$1.40 level, which previously acted as intraday support. This area is crucial for determining the next short-term move.

Key Resistance and Support Levels

As long as XRP remains below the channel’s mid-structure and the $1.50 zone, any upside attempts are likely to encounter selling pressure. A move toward the $1.50–$1.55 supply region would be viewed as a corrective retest unless it is accompanied by strong momentum and a structural break. Conversely, a failure to hold the current support cluster would expose the lower boundary of the channel, increasing the likelihood of another liquidity sweep below recent lows.

Broader Market Context

XRP’s price action is also influenced by broader market trends, including the performance of Bitcoin and Ethereum, and developments in macroeconomic factors. Any positive news regarding regulatory clarity or increased institutional adoption could provide a bullish catalyst for XRP and the broader crypto market. The approval of Bitcoin ETFs, for example, has improved overall market sentiment and liquidity.

Potential Catalysts and Risks

Several factors could potentially influence XRP’s price in the coming weeks. Positive developments in Ripple’s ongoing legal battle with the SEC could provide a significant boost. Conversely, negative outcomes or increased regulatory scrutiny could exert downward pressure. Monitoring these developments is crucial for assessing XRP’s potential trajectory.

Conclusion

In summary, XRP is currently range-bound within a descending channel, with its next move contingent on breaking key resistance or support levels. Traders and investors should closely monitor price action around these levels, as well as broader market trends and regulatory developments, to make informed decisions. The ability of XRP to overcome its current bearish structure will determine its short to medium-term outlook.

Related: XRP Signals $80 Target, Analyst Says

Source: Original article