Crypto market analyst “Steph is Crypto” recently discussed a series of indicators that suggest XRP might be on the verge of a major rally.
The community pundit revealed these indicators in one of his extensive XRP analyses. He leveraged chart data to highlight major support and resistance levels, as well as metrics that show the potential for a bullish uptrend in XRP.
XRP Key Support
Steph, in his video “XRP: WHAT THEY DON’T WANT YOU TO SEE!!” pointed out the importance of XRP’s current support around the $0.50 mark on the weekly timeframe. This level has served as both a support and resistance point multiple times over the past few years, making it crucial for maintaining XRP’s momentum.
According to Steph, past price action has shown that breaking below this range could weaken XRP’s position, so holding above it is important for the altcoin to sustain optimism.
XRP Key Support | StephisCrypto
He also discussed a major support zone in the volume profile, which shows a cluster of buying activity that has historically sustained XRP’s price. Currently, the $0.50 level also aligns with the 0.5 Fibonacci retracement level, bolstering its significance.
Downward Trendline Resistance
Another factor the analyst identified was a downward-sloping resistance line formed since mid-2023. This trendline has repeatedly capped XRP’s attempts to rally, marking several points of resistance over the past few months.
Steph believes breaking above this trendline would likely indicate an impressive bullish breakout, creating the path for XRP to push past its current levels.
XRP Downward Trendline | StephisCrypto
With XRP down 16% this year, if it manages to overcome the trendline resistance, it will confirm a change in market sentiment toward bullishness. Steph identifies the key resistance zone between $0.67 and $0.68, which represents the golden Fibonacci ratio, as the breakout point.
XRP Liquidity and Short Squeeze Potential
Steph also discussed the concentration of short positions around the $0.66 to $0.67 range, citing data from XRP’s liquidation heat map.
With a high number of stop-losses and liquidation points clustered in this area, XRP could experience a short squeeze if the price breaks above current resistance. In such a scenario, short sellers would be forced to cover their positions, further driving the price up.
XRP Liquidation Heatmap | StephisCrypto
The market often gravitates towards high-liquidity zones, which currently align with the short positions on XRP. As Steph explains, this creates an environment where upward movement could trigger a chain reaction of buying pressure.
XRP Whale Accumulation and Historical Recoveries
Meanwhile, XRP’s accumulation distribution (AD) indicator, which tracks large investors’ buying and selling patterns, bolsters the altcoin’s bullish position.
Steph noted a visible increase in whale accumulation, with big players buying up XRP despite the sideways movement in its price. Such behavior often precedes major rallies, as was the case in 2017 and 2020.
The current setup is similar to those previous accumulation phases, suggesting that whales are positioning for a potential breakout. Steph believes that this accumulation, coupled with tight price compression, points to a potential substantial bullish move.
He also called attention to XRP’s history of overcoming severe price slumps. The altcoin has experienced drastic drops in the past, including declines of 95% from 2014 to 2017 and 96% from 2018 to 2020, only to recover with powerful rallies afterward.
XRP Slumps and Recoveries | StephisCrypto
Currently, XRP is down roughly 85%. With whale accumulation and increasing price compression, Steph points out that XRP may again be setting up for a recovery.
Currently, XRP trades for $0.5142, up 1.05% this month amid a mild recovery push. This rebound follows a 16.74% decline in October despite BTC recording a 14% gain in the same month. XRP needs to hold above $0.50 and target the $0.66 region to turn the tides.
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