– XRP price has shown incredible buying pressure after a dip into the $0.381 to $0.433 demand zone.
– A recovery above $0.464 could ignite the next run-up, but ideally, a retest of $0.397 could be a good place to be a bull.
– A daily candlestick close below $0.381 will invalidate the bullish thesis for Ripple enthusiasts.
XRP price has been a perfect example of explosive volatility as it triggers an exponential run-up. This move is currently cooling off as investors continue to book profits and market conditions improve. As discussed in the previous article, the remittance token has slipped into the demand zone and has shown incredible resilience, suggesting that a new rally might trigger soon.
XRP price prepares for its next leg
XRP price rallied 79% between September 7 and 23 and set up a local top at $0.559. This explosive rally pierced through the $0.331 to $0.464 range but faced a slowdown, resulting in a 25% retracement into the $0.381 to $0.433 demand zone.
Although XRP price has recovered 7.5% since tagging the said demand zone, investors should remain vigilant and expect a retest of the range’s midpoint at $0.397. A recovery above the range high at $0.464 will be a secondary confirmation of the next leg’s start.
In such a case, market participants can look at the $0.561 to $0.596 resistance box as the next target for XRP price. This move would constitute a 25% gain from the current position – $0.447.
On the other hand, if XRP price sees a sudden spike in selling pressure that pushes it to produce a daily candlestick close below the aforementioned demand zone’s lower limit at $0.381, it will invalidate the bullish thesis. This development could see XRP price revisit the range low at $0.331.
Read Bitcoin price ruptures $19,000 support oblivious to ballooning BTC/GDB’s trading volume