- XRP has regained its bullish structure on the daily charts, breaking past the $2.5 resistance zone.
- A retest of the 78.6% Fibonacci retracement level triggered a rebound, with potential long-term targets at $3.73 and $4.26.
- Short-term consolidation around $2.7 is likely, as indicated by bearish divergence on the 4-hour chart.
- Liquidity pockets at $2.86 and $3.37-$3.43 could act as magnetic zones for price movement in the coming days.
XRP’s Bullish Breakout: A Shift in Market Structure
XRP has recently demonstrated a strong recovery, breaking out of its short-term range and climbing above the critical $2.5 resistance level. This move has solidified its bullish market structure on the daily charts, signaling a potential continuation of its upward trajectory. Over the past 48 hours, buying pressure has intensified, pushing the price higher and meeting the condition of flipping the $2.5-$2.7 zone into support.
The daily Relative Strength Index (RSI) has crossed above the neutral 50 mark, indicating a shift in momentum toward the bulls. Meanwhile, the On-Balance Volume (OBV) has continued its upward trend, showing that buying activity remains strong. Notably, during the sharp price pullback in early February, the OBV barely dipped, suggesting that selling pressure was minimal. This resilience in volume further supports the case for a sustained rebound.
Fibonacci Levels and Long-Term Targets
The recent rebound in XRP’s price came after a retest of the 78.6% Fibonacci retracement level, a critical zone often associated with strong reversals. Historically, recoveries from this level tend to target the 23.6% and 61.8% Fibonacci extension levels. For XRP, this translates to potential long-term price targets of $3.73 and $4.26.
While these levels represent the broader upside potential, the immediate focus remains on local highs. Over the next 2-3 weeks, XRP is likely to aim for incremental gains, with the $2.86 zone emerging as the next key target. This area aligns with liquidity pockets identified in the market, making it a magnet for price action in the short term.
Short-Term Consolidation: What the 4-Hour Chart Reveals
Despite the bullish momentum on the daily chart, the 4-hour chart presents a more cautious outlook. A bearish divergence between the price and the RSI suggests that XRP may enter a consolidation phase around the $2.7 level in the coming days. This divergence, combined with a flat OBV trend, indicates that while buying pressure remains steady, it may not be strong enough to drive immediate upward movement.
However, this consolidation is unlikely to result in a significant pullback. XRP has already broken through key short-term resistance levels, and the price is expected to remain above the fair value gap at $2.6-$2.68. This range could act as a support zone, providing a base for the next leg of the rally.
Liquidity Pockets and Magnetic Zones
Market liquidity data offers additional insights into XRP’s potential price trajectory. The liquidation heatmap from the previous month highlights key liquidity pockets that could influence price movement. The $2.86 zone, in particular, stands out as a likely short-term target due to the concentration of liquidations in this area.
Further north, the $3.37-$3.43 zone emerges as another critical level. The significant number of liquidations in this region suggests that it could act as a magnet for price action, drawing XRP higher as traders adjust their positions. These liquidity-driven targets align with the broader bullish outlook, reinforcing the case for continued upward momentum.
Conclusion
XRP’s recent price action has marked a decisive shift in its market structure, with the cryptocurrency breaking past key resistance levels and regaining its bullish footing. The rebound from the 78.6% Fibonacci retracement level has set the stage for potential long-term gains, with targets at $3.73 and $4.26.
In the short term, consolidation around $2.7 is likely, as indicated by bearish divergence on the 4-hour chart. However, this phase is expected to be temporary, with liquidity pockets at $2.86 and $3.37-$3.43 providing clear targets for the next leg of the rally.
While the broader market remains cautious, XRP’s strong buying pressure and resilient volume trends suggest that it is well-positioned for further upside. Traders should monitor key support and resistance levels closely, as well as liquidity data, to navigate the next phase of XRP’s price movement.
