XRP surprised the market with a nearly 10% rally on Saturday, January 11, 2025, marking a retest of the $2.60 resistance level for the first time in a month. However, the surge quickly faced a pullback, leaving investors and analysts wondering about the future direction of the asset.
Arthur, a seasoned market analyst, described the rally as a bullish breakout from a symmetrical triangle pattern on XRP’s daily chart. Such patterns are often precursors to significant price movements, and XRP’s breakout aligned with increasing momentum and trading volume. Despite the promising setup, Arthur cautioned that confirming the uptrend is crucial before traders fully commit. This could happen through price stability above key levels.
During the pullback, trading volume increased, but not to extraordinary levels. This suggests hesitation among sellers, which may indicate that the correction is temporary rather than the start of a bearish trend. Arthur’s outlook is further supported by XRP’s relatively moderate relative strength index (RSI) of 59.72, which indicates bullish sentiment without reaching overbought conditions. This suggests room for continued upward movement.
XRP’s Open Interest in the derivatives market surged to over $5 billion during the correction, signaling growing market activity. However, the critical question is whether XRP can maintain its position above key support levels. Arthur identified $2.50 as the first major support zone, with deeper levels at $2.20 and $1.80 if the support fails to hold. On the upside, $2.80 and $3.00 are the next significant resistance levels, marking potential profit-taking zones.
Arthur presented two potential scenarios: If XRP holds $2.50 as support and maintains momentum, it could push towards $2.80 or even $3.00. Conversely, increased selling pressure could lead to a dip back into the symmetrical triangle, retesting lower levels. In both cases, monitoring volume and liquidity zones will be key for traders looking to navigate this volatile period.
Also Read: XRP Price Targets $3.66 and $3.75: Is Ripple Set to Lead the Altseason Rally?
Despite the pullback, Arthur remains optimistic about XRP’s future, believing that the rally indicates underlying bullish momentum, contingent on confirming key support and resistance levels.
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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