XRP recently successfully broke through the $2.6 resistance level, which has been suppressing bulls since March. This breakthrough was aided by high trading volume, coinciding with Bitcoin [BTC] entering unknown territory. Naturally, the next target will be the psychological resistance level of $3.
This altcoin tested this level on Monday, July 14, but failed to immediately reverse it to a support level. The increase in whale accumulation means that large holders are confident that the price will rise further. Therefore, an XRP increase may just be a matter of time.
The news of the U.S. Securities and Exchange Commission approving the listing of the ProShares Ultra XRP ETF has also boosted bullish sentiment.
How should you prepare for the next XRP price movement?
The 1-day chart highlights strong bullish momentum. The moving averages are far below the market price at the time of writing. The last time this occurred was during the rebound in November. For the past two months, the moving averages have failed to catch up with XRP's price. If this continues, traders and investors can expect a smaller pullback, with a rebound coming soon.
CMF above +0.05 indicates rising buying pressure. The A/D indicator also confirms this conclusion. Despite price range fluctuations, the upward trend since March suggests absorption of buying.
There is a fair value gap (white box) in the $2.6 area, coinciding with the previous range high. AMBCrypto's analysis of the liquidation heat map found that this fair value gap could be an attractive price target.
The two-week liquidation heat map shows that market liquidity is dense just above $3. This may be a clear short-term price target. It is close to the $2.91 market price at the time of writing, which means XRP is likely to rise to $3.04-$3.08 next. Once XRP breaks through $3.1, the likelihood of further increases will significantly rise.
In the south, the $2.61-$2.66 area is a magnetic region comparable in size to the area around $3. If a pullback occurs, buyers can expect the price to fall back to $2.6, which is the fair value gap and the previous range high. The Consumer Price Index (CPI) data also shows that inflation accelerated in June. This may harm Bitcoin's upward momentum in the short term, thereby affecting XRP bulls.
