- XRP has witnessed accumulation within a certain range over the past month.
- Short-term sentiment is bearish, but the $2.4 level is expected to be reached in the near term.
Ripple [XRP] has a long-term bullish outlook. The previous surge to $2.9 has led to the formation of a consistent range with accumulation from investors.
Veteran commodity trader and classic chartist Peter Brandt recently confirmed a $500 billion market capitalization for XRP.
XRP's range formation and the next buying opportunity
Source: XRP/USDT on TradingView
Over the past month, XRP has traded within a range of $2 to $2.62. The price level at $2.31 has acted as both support and resistance over the past month, and currently, it is resistance.
To the south, a price gap from late November has become the next demand zone that XRP may witness a bullish reaction. Although this range has formed, the OBV has gradually trended higher over the past month.
This is an encouraging sign, indicating that selling pressure has weakened. The daily RSI chart also maintains above the neutral 50 level, signaling that the bullish momentum is dominant.
A retracement back to the lower end of the range or even the $1.9 level would present a long-term buying opportunity.
Heavily skewed short-term liquidations to the upside
Source: Coinglass
The liquidation map over the past month shows a large cluster of high-leverage liquidations between $2.33 and $2.4. The cumulative liquidations up to $2.4 have surpassed those up to $2.21.
This means that a northbound move will trigger larger liquidation volumes.
Source: Coinalyze
Open Interest and spot CVD have declined in the past 24 hours. This is a consequence of the selling pressure from the decline in Bitcoin [BTC]. The Funding Rate has also dropped lower.
The short-term data suggests a bearish sentiment.
The liquidation map reveals that a push towards the top of the range is likely in the coming days. However, whether a breakout of the range will occur remains unclear.
Swing traders need to be prepared to take profits on this rally and may consider re-entering at the $2.35 - $2.4 level as a support test.
