As liquidity levels suggest increasing buying pressure, XRP's price seems to be approaching higher valuations. A cryptocurrency market expert stated that this trend could lay the groundwork for a potential strong rebound. However, this altcoin must first break through the key resistance level of $2.40 to confirm a sustained rise.
XRP price faces resistance at $2.4 before the next round of increase
XRP currently shows early signs of strong bullish momentum, which could drive it to new highs. However, a cryptocurrency analyst on XRP (formerly Twitter) warned that for XRP's price to confirm a breakout, it needs to surpass the key resistance level of $2.4.
A price chart from the analyst shows that XRP is currently testing a long-term descending trend line, which had previously failed to break the earlier upward trend. CryptoInsightsuk noted that the token was trading at approximately $2.28 at the time of analysis and is currently struggling to hold the resistance level of $2.4. The goal is to convert this key price point into a support level, or it may hinder bullish momentum.
Looking ahead, XRP's Relative Strength Index (RSI) is positioned near the neutral 51 point in the first price chart, indicating balanced momentum and potential for further upward movement. While the regular RSI remains balanced, the Random RSI at the bottom of the chart has entered the overbought area.
The Random Relative Strength Index (RSI) is currently above 80, which typically indicates that a price pullback or consolidation may occur in the short term, followed by a new round of increases. Although XRP's price recently rebounded from around $2.05 in January to about $2.8, the trading volume for this altcoin remains relatively moderate.
Notably, CryptoInsightsuk views $2.4 as the first real resistance level. A daily closing price above this level would indicate the early stages of a potential trend reversal. However, greater resistance remains at $2.6. Only a breakthrough at this level can fully confirm the bullish trend and possibly open up more aggressive upward targets. Before that, bulls still face pressure and need to maintain momentum for the altcoin at this critical stage, pushing its price toward new breakout levels.
Liquidity levels send cautious signals when prices test resistance levels
CryptoInsightsuk's second XRP price chart reinforces his bullish stance, providing a detailed analysis of the liquidity levels and trading volume concentration of this cryptocurrency. The analyst emphasizes the importance of the liquidity levels currently forming around this altcoin. These levels represent hot areas of market attention, which are often both resistance points and potential magnets for price action.
Notably, CryptoInsightsuk pointed out that as price fluctuates, liquidity can sometimes be left behind. However, when liquidity is as dense and evident as it is now, it becomes a key factor in market behavior and future price trends. Despite XRP showing a bullish structure, the analyst remains cautious, as strong liquidity nearby indicates that if the price fails to break through this area, it could become a trap.
