Is XRP Worth Buying in 2024? | BITmarkets
Vijesti Analize Is XRP Worth Buying in 2024?

Is XRP Worth Buying in 2024?

April 25, 2024 Analize
BITmarkets | Is XRP Worth Buying in 2024?

Ripple's XRP needs no introduction. The reputable digital asset has cemented itself within the top 10 largest cryptocurrencies in market capitalization.

While this year has seen record profits across the cryptocurrency market amid one bull run and frenzy after the other, XRP hasn't been part of action as it grapples with several fundamental challenges, losing more than 10% of its value since the start of the year.

Currently, its price is weakened and has been in a consolidation zone for the second consecutive year.

What are the prospects of Ripple returning to its all-time highs (ATH), and what conditions would need to be met for such a rise?

1 month time frame

XRPA.1

XRPUSD - 1 Month Time Frame

In 2022, there was an impulsive bearish move that created a Sell-side Imbalance Buy-side Inefficiency zone on the monthly chart. Initially, this zone suggests a bearish market outlook. However, once there is a close above the 0.5 Fibonacci level of this zone, it is likely that the market will interpret it as an Inversion Fair Value Gap (IFVG), transforming it into a bullish indicator.

The current consolidation is occurring right within the IFVG (indicated by the yellow zone on the chart). Here, initial Sell-side Liquidity (SSL) selections were made. If influential market participants are looking to enter, this is where they would find their counterparties through Sell Stop orders.

The crucial factor will be the price action following the engagement of the nearest Buy-side Liquidity area if the price begins to ascend.

Conversely, if the price maintains its bearish trajectory, it will be crucial to monitor the price movements after engaging further Sell-side Liquidity areas, where high-volume buy orders can again be executed.

Trade Confirmation

For a price move in either direction—falling after selecting Buy-side Liquidity or rising after selecting Sell-side Liquidity—a structural break on a smaller timeframe, such as the daily or 4-hour chart, will be necessary to confirm the trend.

Pridružite se

Pokušajte pozvati svoje prijatelje i zajedno zaraditi

10% od naknada za trgovanje vaših prijatelja i 5% od zarade vaših prijatelja.