Ripple (XRP) was trading at $1.89 at the time of writing, having fallen back below psychological support at $2 when Bitcoin (BTC) fell below $90,000 last week. XRP was still slightly above the January low of $1.81.
A recent report from AMBCrypto noted that while spot ETFs were positive and there was evidence of whale accumulation, the market may not yet be ready for a rebound. The derivatives market has also signaled risk aversion.
XRP Structure Review
Source: XRP/USDT on TradingView
The 3-day low is at $1.77, a level that has yet to be breached. Yes, all of January’s gains were reversed in the last ten days, but the price was still trading within the highlighted weekly demand zone.
The CMF has been below -0.05 since December, indicating a prolonged and steady outflow of capital. No buying volume or sustained upward price movement has been seen over the past few weeks, and the recent retracement has not helped the bullish scenario.
The CMF fell by -0.05, and the IMF was also unable to rise above 50 over this period. Together, they warned the bulls that more volatile price action was possible.
Rebound of a liquidity cluster
The area just below $2.0 has been highlighted as a liquidation cluster that is sure to send XRP prices lower. This happened. With the liquidity sweep, it seems likely that XRP will rise.
Keep in mind that the internal structure of the 3-day chart has been reversed bullishly after a strong start to the month, despite the subsequent setback.
Why traders should be more patient
Source: CoinGlass
The bias remains bullish, as long as $1.77 remains unbroken. The liquidation map showed that the area up to $1.80 has significant cumulative liquidation leverage.
XRP could see a deeper decline before recovery. A short squeeze towards $2.05 thereafter seemed very likely. If bulls could generate sustained demand, this move could turn into another strong rally, like earlier this month.
Final Thoughts
- The XRP price decline may not be over yet, but the long-term bias remains bullish.
- Traders can remain optimistic as long as $1.77 remains unchanged. Liquidation levels around $1.80 could send XRP lower in the coming days.
Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.
