XRP Soars on Bullish Momentum

We have previously discussed Ripple (XRP) from a technical analysis perspective, concluding with ambiguity. However, the current situation has shifted, significantly increasing the potential for future growth.

XRP has managed to soar more than 30% during the past week, highlighting the omnipresent positive sentiment surrounding the future of a fan-favorite cryptocurrency.

Long-term investors and short-term traders should closely monitor the price in the coming days, particularly as it approaches a crucial resistance level that may confirm a buying setup.

Weekly time frame analysis

XRPUSD - 1 Week Time Frame

The potential scenario for XRP's price has become clearer after a prolonged correction following the initial Sell-Side Liquidity (SSL) pick. Complementing this key momentum, the price has also held above a strong support zone, shown in blue at the SSL level on the attached chart.

Immediately after this, a bullish impulsive move occurred, representing a critical criterion for entering buying positions.

Currently, the price is contending with resistance in the form of the Fair Value Gap. The final and decisive condition is for the price to close above this resistance on the weekly time frame. If this occurs, the price will perceive this zone as support from an algorithmic perspective.

When to buy XRP?

If the condition of closing above resistance is met, it is essential to set profit targets.

The first target is the level of Relative Equivalent Highs, above which the Internal Buy-Side Liquidity is located.

The second target is the external high of the bullish structure, representing the External Buy-Side Liquidity. The Stop Loss (SL) can be conservatively placed below the low, around $0.40.

Short-term traders, whose entry will be based on a lower time frame than the weekly, can set the SL higher.