XRP’s general market outlook is still considered bullish in the mid-term despite the recent meltdown. Having seen a notable recovery in the last 24 hours, it is still looking weak on the daily scale.
Breaking to a new high last month, XRP halted the rally due to a rejection and suspended the bullish move. After a week of consolidation, the price broke down and started to lose momentum. That led to notable losses last week but it stayed well above the $2.5 level.
Selling volume increased this week and the asset crashed to $1.77. This crash generated a lot of FUDs (fear uncertainty and doubt) but the price has recovered well in the past hours. Despite that, the market still looks very weak on the day.
A rise in the supply level could cause more bleeding in the market. If that happens, it must dip below yesterday’s low before confirming a continuation. Otherwise, we may see a strong buyback.
However, yesterday’s pin bar candle close indicates an imminent shift. If the bulls act upon this candle pattern, we can expect a fresh buy, which may lead to another bullish phase in the near term.
Another thing to pay attention to here is XRP’s daily volume indicator, which has been declining since the price touched $2.9 in late 2024. If the volume level keeps dropping, XRP could lose momentum until it finds a threshold.
XRP’s Key Level To Watch
Source: Tradingview
Advancing a bearish move could bring us back to the $2.2 support and $1.9. A crack below $1.75 could send the price to $1.63 and $1.28.
A recovery above the immediate r$2.66 resistance could bring us back to the key $3 level. A full recovery to the recent $3.4 top could rally the asset to $4.
Key Resistance Levels: $2.66, $3.4, $4
Key Support Levels: $2.2 $1.9, $1.63
- Spot Price: $2.61
- Trend: Bullish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Source: https://nulltx.com/ripple-price-analysis-prediction-february-4-xrp-recovers-from-dip-following-a-13-daily-gain-possible-buy-in-play/