Over the weekend, XRP made headlines as it briefly reclaimed the $0.60 mark for the first time in September, reaching a one-month high of $0.6129 on Saturday. However, this surge was followed by a quick correction, with XRP now hovering around $0.59—just under the psychological barrier that has become a significant resistance point.
XRP Breaks The Cup And Handle Pattern
Market analyst Steph recently highlighted an intriguing development in XRP’s price action: the token has successfully broken above the neckline of a classic cup-and-handle pattern on the 4-hour chart. This bullish formation had eluded XRP since mid-September, but the recent rally suggests a potential trend reversal. According to Steph, if XRP can maintain four-hour closes above the $0.59–$0.60 range, it could confirm the continuation of a bullish trend.
The target? A climb to the $0.69 to $0.70 range, representing a potential 17.7% gain from its current price. Achieving this would mark a six-month peak for XRP. However, caution is warranted as the market faces volatility and liquidity traps in the short term.
Resistance Levels and Liquidity Risks
For XRP to establish a solid upward trajectory, it must first conquer the $0.64–$0.65 zone, which aligns with the 0.786 Fibonacci retracement level. Historically, this area has acted as a resistance point, notably in April and August of this year. Breaking through this level is crucial; failure to do so may lead to further downward pressure.
Steph emphasizes the liquidity risks that could sway market dynamics. The liquidation heat map indicates a significant accumulation of short positions, with over $52 million in liquidity concentrated in the $0.66 range. If these shorts get triggered, XRP could see a rapid price surge as traders scramble to cover their positions.
Legal expert Bill Morgan weighed in on XRP’s current challenges, particularly its ongoing struggle with the $0.60 resistance level. He noted that XRP’s inability to sustain its recent breakout could signal a dip below the 20-day EMA (Exponential Moving Average). Citing an analysis from Investing, Morgan reiterated that the $0.60 level has historically posed strong resistance, and failing to consistently breach it might lead to further consolidation.
While long-term XRP holders remain optimistic about reaching new all-time highs, Morgan advises investors to proceed with caution. Until XRP decisively breaks above $0.60 and maintains that position, any short-term price spikes could be fleeting.
Binance Reserve Insights
In a notable market trend, CryptoQuant data shows that XRP reserves on Binance have been increasing since September 11, rising from 2.941 billion to 2.983 billion tokens over the past 12 days. However, a slight dip was observed yesterday, suggesting that market sentiment remains fluid and volatile.
As XRP navigates the critical $0.60 resistance level, traders and investors alike are left speculating: Is this rally a precursor to greater gains, or will the token succumb to the pressures of liquidity traps and market volatility? With analysts closely monitoring XRP’s movements, the coming days will be pivotal in determining the token’s trajectory.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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