XRP Moves Into Bullish Zone: Key Technicals Turning Positive
After a period of consolidation, the price of XRP has risen above short-term trend indicators. There are indications of renewed interest in purchasing the cryptocurrency. The price of the digital asset has surpassed its 9-day exponential moving average (EMA). The difference between the 9-day and 20-day EMAs has also decreased, according to technical data. There has been an upward move in the Moving Average Convergence Divergence (MACD) indicator. Additionally, the histogram displays expansion. Chart analysis indicates that the Relative Strength Index (RSI) has returned to a neutral-to-bullish zone.
Liquidity Barriers May Shape XRP’s Next Move
Order-book data indicate that several ask walls, which imply major supply hurdles, are present in the resistance band that XRP faces at several price levels. According to market data, stronger liquidity barriers at higher price points follow the initial significant resistance, which is located at hidden levels. A closure above the initial resistance levels, according to analysts, would indicate a possible structural shift in favor of a bullish trend. To validate the shift in trend, this action would require a volume clearing order-book liquidity. Thinner liquidity is observed above current resistance areas, according to technical watchers. Upward momentum may quicken if the current sell orders are absorbed by buying pressure.
Could XRP Break Support and Shift Bearish?
The price floor of XRP is maintained at multiple adjacent support levels. Multiple bid barriers above these supports are visible in the order book data. This indicates strong buyer demand. The market may become more bearish or consolidate if it breaks below this support area. Experts pointed out that this risk rises, especially if momentum indications begin to turn around. As of right now, the cryptocurrency has not verified a complete positive reversal. Price action analysis, on the other hand, indicates that the market’s stance has changed from the more negative outlook seen earlier in the week.
After nearby ask barriers were successfully cleared, technical analysts looked for entry points above the initial resistance level for long holdings. Market watchers observed that further profit-taking zones correspond with later resistance levels where liquidity density rises. How the market responds to stacked resistance levels will determine the next stage of price movement. Momentum indicators provide an encouraging environment for this movement. Nonetheless, analysts stated that the primary determinant of future price direction is still liquidity restrictions.
For more up-to-date crypto news, you can follow Crypto Data Space.
