After the market crash over the month of October, the XRP price has now returned to the $2.2 levels, still holding strong support above $2. While this decline has caused a fair amount of panic among investors, the XRP price may actually not be in a terrible position as of now. This was brought to light by crypto analyst Cryptoinsightuk, who explained that the digital asset’s price has now fallen to levels that had previously led to a major bull rally for the altcoin.
Why The XRP Price Is Still Very Bullish
In the analysis that was shared on the X (formerly Twitter) platform, Cryptoinsightuk explained that the XRP price was actually sitting at a pretty exciting point. This is because the altcoin’s price was still holding well within its range lows on the daily. This suggests that the established support is still incredibly strong and could serve as a base for the XRP price to begin another rally.
Another major development that the crypto analyst pointed out was the fact that the cryptocurrency had taken out the majority of liquidity below the current price. This refers back to the price plunge that began on October 10, which took out most of the liquidity at the lower levels.
Naturally, this means that there isn’t much upside or money to be made by market makers when the XRP price plunges from here. Instead, most of the liquidity now lies at higher levels, with shorts piling up by the day. Thus, a sharp increase would present the most opportunity for a liquidity sweep, and a short squeeze could be the most natural response to the rising number of short positions in the altcoin.
Technicals Are Also Showing Bullishness
Leaning more into the technical side of things, CryptoInsightUK also points out major developments that show much bullishness. This ranges from the RSI all through to the Wycoff accumulation, all showing that the XRP price is sitting at a level that could trigger a possible change in tide.
The first of these is the weekly RSI, and so far, the weekly has managed to hold the 7-year resistance from 2020, as highlighted in the post. With the market crash, the XRP Weekly RSI has moved quickly, and now, it is sitting at levels not seen since 2024. This is important because it was this level that the weekly RSI was sitting before the November 2024 rally, and what followed at that point was a 600% rally.
Additionally, the XRP dominance chart looks to be completing a Wycoff Accumulation trend, and this usually happens before a resurgence. If all of these indicators are right, a repeat of 2024 would mean a triple-digit rally. Rising 600% from here would mean that the XRP price would rise above the $10 level.
Featured image from Dall.E, chart from Tradingview.com
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