XRP is one of the largest cryptocurrencies by market capitalization, has shown the strongest recovery following the recent significant market downturn. Given this resilience, now may be a timely opportunity to consider potential buy positions.

However, as with any investment, careful attention to key price levels and effective capital management is essential. In this analysis, we’ve compiled all the critical information you need to navigate these potential entry points. Let’s dive in.

4-hour time frame analysis

XRPUSD - 4 Hour Time Frame

XRP currently presents a compelling buying opportunity based on several technical indicators. The most crucial factor is how the price has interacted with two key resistance zones established during the last bearish move.

Initially, it targeted the critical Sell-Side Liquidity level. The subsequent closure above these resistance zones provides a strong technical basis for considering entry into buy positions.

XRP price target

Since no trading position has a 100% success rate, strict adherence to risk management principles is vital. The Stop-Loss order could be strategically placed below the internal low, as indicated on the attached chart.

Additionally, traders may consider selling part of the position if the price closes below the lower level of the support zone on a four-hour timeframe. Maintaining bullish momentum requires that the price does not close within this zone.

For the full or remaining position volume, traders could aim to hold until the price reaches Buy-Side Liquidity levels, along with key psychological price points of $3.5 and $4.0.

This approach allows traders to maximize potential gains while mitigating downside risks by adjusting exposure based on market movements and closing levels.