San Francisco, CA – The price of Ripple’s XRP has been showing signs of potential relief for bullish traders in the coming weeks. Traders are advised to anticipate different scenarios that could unfold in July as they navigate the cryptocurrency market.
Recent analysis of XRP’s performance indicated that the token was trading at the lower end of a range that dated back to mid-April. Despite this, a bullish pattern emerged during a period of consolidation, offering a glimmer of hope for investors looking for an upward trend.
The XRP on-chain metrics also signaled a potential buying opportunity for traders. Daily active addresses showed a gradual decline since late March, reflecting decreased usage and demand. Additionally, the percent supply in profit decreased in June, leading to a drop in the 30-day MVRV into negative territory. However, the mean coin age began to increase in the past month, signaling accumulation and the potential for an undervalued asset.
A closer look at the liquidation data revealed two possible scenarios that could unfold for XRP. The liquidation heatmap showed concentrations of liquidation levels near the $0.55 mark, suggesting a potential upward price movement. On the other hand, another attractive pocket of liquidity was identified around $0.436, closer to current market prices.
Traders must remain vigilant and prepared for different outcomes as XRP navigates these price levels. The cumulative liquidation levels delta indicated that short liquidation levels surpassed long liquidation levels by a significant margin, setting the stage for a potential move higher to squeeze out short sellers. Key short-term targets include the $0.485 level, with the possibility of a surge towards $0.55 in one scenario.
In another scenario, XRP could face rejection around $0.485-$0.49, potentially falling to $0.436 before initiating a recovery towards the $0.56 range high. With uncertainty lingering in the cryptocurrency market, traders are advised to adapt to any situation that may arise to make informed decisions and capitalize on potential opportunities.