Will XRP Turn Bullish?

Buying cryptocurrencies during corrections generally carries more risk than buying during clear upward trends.

However, every correction eventually concludes, and with solid risk management, it’s possible to enter the market after confirmation at a lower price point. This scenario is now playing out with XRP.

Daily time frame analysis

XRPUSD - 1 Day Time Frame

Over the past two months, XRP's price has established a significant liquidity level due to early buy positions accumulated by retail traders, as the price has respected a support zone. At BITmarkets, we focus on identifying confirmed trading opportunities, which have now materialized in XRP's case.

The price recently withdrew this initial liquidity, allowing institutional traders to enter buy positions by using retail participants' Sell Stop orders, and subsequently closed above an important resistance level on the daily timeframe.

XRP price target

The key to holding the full volume of this buy position will be either the resistance or the newly established support zone.

XRPUSD - 1 Week Time Frame

If the daily timeframe closes below the lower boundary of this zone, it would be advisable to sell a significant portion of the position. Any remaining volume can be held until it reaches the final Stop Loss level, marked below the internal low on the chart provided.

On the other hand, there are multiple Take Profit levels. Partial profits can be taken as the price reaches each level, with the final Take Profit target positioned on the weekly timeframe near relatively equal highs.