- XRP was trading above a key support zone within a defined consolidation channel, signaling the potential for an upward move.
- Technical indicators suggest that XRP’s next rally may not begin immediately as the asset continues to stabilize.
After a remarkable 334.27% surge last month, Ripple (XRP) took a break to consolidate within a defined range. This phase resulted in a slight decline of 0.76%, which analysts consider a healthy correction.
Despite the current slowdown, AMBCrypto reports a high probability that XRP will reach higher levels soon.
XRP Pushes for 66% Gain: Here’s What to Watch
After XRP’s recent rally, the asset is taking a breather as it builds momentum for what could be its next upward move.
Currently, XRP is trading within a symmetrical triangle, a consolidation pattern formed by the convergence of support and resistance levels.
The rally remains intact, with strong support at 2.2499 preventing any significant pullback. This level made it possible to stabilize the asset during its consolidation phase.
Source: TradingView
If the coin breaks out of this trend, analysts predict an additional gain of 66.83%, pushing the price to $4.0706. At this point, buying pressure should ease.
Is an XRP Rally on the Horizon?
Technical indicators suggest that the expected XRP breakout may not materialize in the near term.
The Chaikin Money Flow (CMF), which gauges market sentiment by measuring cash inflows and outflows, was negative. With a reading of -0.04, this indicates insufficient buying interest to maintain bullish momentum.
Likewise, the Bull Bear Power indicator, which helps determine whether bulls or bears are dominating the market, remained negative at -0.0462. This is reflected in a series of red bars, signaling bearish control.
Source: Commercial View
These readings suggest that the coin lacks the momentum for an upward move and could face further declines as the bears maintain their grip on the market.
Long traders suffer heavy losses
Over the past 24 hours, a wave of long liquidations has hit XRP traders, leading to significant losses for those betting on a rally.
The total liquidation amount reached $39.92 million, with long traders accounting for $30.78 million of that figure. This significant gap suggests that the market is currently positioned against an upward move.
Source: Coinglass
Read Ripple (XRP) Price Forecast 2024-2025
Unless technical and on-chain indicators show a decisive change, XRP’s rally towards $4 will likely remain stuck in its consolidation phase.
