As Q2 approaches the end, it is possible that XRP price action has been set for an astonishing breakout. Altcoin has been below $2.50 for over a month, but new technology indicators show brewing optimism.
The wider crypto market drifts sideways, but XRP quietly builds bullish momentum beneath the surface. This analysis has details.
Trader Eye XRP Rally
The XRP liquidation heat map shows a significant concentration of liquidity around the $2.20 price range. At press time, the tokens trade for $2.14 and are placed just 2.8% below this liquidity cluster.
A liquidation heatmap is a visual tool that traders use to identify price levels where large clusters of leveraged locations are likely to be cleared. These maps highlight areas of high fluidity. Often there are bright zones that are color coded to indicate intensity and represent greater liquidation possibilities.
These liquidity zones act like magnets for price action as the market moves naturally towards them, triggers stop orders and opens new positions.
For XRP, the liquidity cluster around the $2.20 level emphasizes the strong interest of traders in buying or closing short positions at that price. If bullish momentum is built, this setup will increase the chances of short-term gatherings.
Furthermore, the decline in XRP’s network has resulted in profit/loss (NPL). The 30-day moving average is 727 million, down 11% over the past week.
The NPL measures the total profit or loss that an investor realizes as he moves a coin. As NPLs immerse themselves in negative territory, it shows that more holders are losing their tokens rather than profits.
Historically, this trend reduces sales pressure as investors are generally reluctant to let go of their assets underwater. In the case of XRP, the recent decline in NPL suggests that most holders are refraining from rebounding rather than locking up losses.
XRP Eyes Breakout as the Bulls target $2.29
At press time, XRP trades for $2.13. If you buy pressure and Altcoin breaks out of the sideways trend, it could rise towards $2.29.
A successful violation of this price mark could set XRP to the rally towards $2.45.
However, if sell-side pressures skyrocket, the price of XRP tokens could increase in inactive performance and drop to $2.08. If demand is low at this point, Altcoin can immerse itself in an additional $1.99.
Disclaimer
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. Although Beincrypto is committed to accurate and unbiased reporting, market conditions are subject to change without notice. Always carry out your research and consult with an expert before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
