Analysts say that the price of XRP could be ready for a breakout on the higher time frame. However, the price of Ripple seems to be cooling off on the one-day time frame before the next move, with bulls already taking positions.
Based on the bullish volume profiles (blue), bulls are looking to interact with the price of Ripple just above the demand zone between $2.96 and $2.73. This means that the downward trend could continue another 5% to 7% before a possible change in direction.
The RSI indicator (Relative Strength Index) is also falling, a sign of declining momentum. If the immediate support at $3.10 does not hold, the price of XRP could drop until bulls act at the mentioned level, with the demand zone offering significant support downward.
On the contrary, an increase in buying pressure above current levels could cause the price of XRP to resume its upward trend, potentially surpassing the bears (red volume profiles).
However, with the supply zone between $3.40 and $3.54 causing upper pressure, bulls looking to take long positions in XRP should likely wait for a candle close above the midpoint or median line of the supply zone at $3.4687.
A candle close above this level on the one-day time frame could catalyze a further rise, setting the stage for the price of Ripple to recover its peak of $3.66. Such a move would constitute a 7% increase above current levels.
