In the past few days, the overall cryptocurrency market has been there for sideways including top assets such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and XRP (XRP). This prolonged sideways movement has formed a bullish trade setup in Ripple’s native token XRP, with an ideal risk-to-reward ratio.
XRP Bullish Trade Setup
Based on the technical and price action analysis, XRP looks bullish as it is at a crucial support level of $0.55 and is forming a bullish inverted head and shoulder price action pattern. Currently, XRP’s daily chart has formed one shoulder and the head, while the other shoulder is in formation. There is a strong possibility that XRP will complete its second shoulder.
This level is flashing a strong buy opportunity with a 1:2.5 risk-to-reward. Based on the price action pattern, XRP could rise 12% to $0.635, with an ideal stop-loss set below the 200 Exponential Moving Average (EMA) and the support level at $0.539.
Despite the recent market crash and significant price fluctuations in other cryptocurrencies, XRP remained above this support level.
XRP Price Overview
At press time, XRP is trading near $0.567 and has experienced a price surge of over 1.35% in the last 24 hours. Additionally, it has experienced a price drop of 5% in the last 7 trading days, according to coinmarketcap.
Meanwhile, XRP’s trading volume has dropped by 45% which hints lower participation from traders and investors in the last 24 hours.
Major liquidation level
As of now, XRP’s major liquidation levels are near $0.553 on the lower side and $0.575 on the upper side, according to the on-chain analytic firm Coinglass. These are the key levels where traders are placing significantly high-leverage bets.
If the market sentiment turns bullish and the XRP price reaches the $0.575 level, nearly $8.04 million worth of short positions will be liquidated. Conversely, if the price falls and reaches to $0.553 level, nearly $6.9 million worth of long positions will be liquidated.