- XRP witnessed range accumulation over the past month.
- Short-term speculative sentiment has been bearish, but a move to $2.4 is expected in the near term.
Ripple [XRP] has a bullish long-term perspective. The rally to $2.9 was followed by a range formation that witnessed a steady accumulation of the bulls.
Veteran commodity trader and classical chartist Peter Brandt recently called for a $500 billion market cap for XRP.
XRP range formation and the next buying opportunity
Source: XRP/USDT on TradingView
For a month, XRP traded within a range stretching from $2 to $2.62. The mid-level of $2.31 has served as both support and resistance over the past month, and at the time of writing it was resistance.
To the south, a gap in fair value from late November was the next demand zone from which XRP could see a bullish reaction. Despite the range formation, the OBV has slowly climbed higher over the past month.
This was an encouraging sight and showed that selling pressure was weak. The RSI on the daily chart also remained above the neutral 50, indicating bullish momentum.
A repeat of the range lows or even the $1.9 level would be a long-term buying opportunity.
There are many short liquidations
Last month’s liquidation map showed a significant cluster of high debt liquidation levels, between $2.33 and $2.4. The cumulative liquidation leverage to $2.4 outweighed that towards $2.21.
This meant that a move north would result in a greater number of liquidations.
The Open Interest and spot CVD have both fallen in the last 24 hours. This was a result of Bitcoin’s market-wide selling pressure [BTC] drop. The financing rate also fell.
Overall, the short-term data showed sentiment was bearish.
Realistic or not, here is the market cap of XRP in terms of BTC
The liquidation chart indicated that a move near the highs in the range was more likely in the coming days. It was unclear whether an outbreak will follow.
Swing traders should be prepared to take profits on such a move, and may consider a rebuy of $2.35-$2.4 during a retest of support.
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer
