Story Highlights
- XRP price stalls after recent gains, analyst sees potential pause for bulls.
- Higher lows suggest underlying strength despite the price drop, and Fibonacci levels indicate support.
- Analyst predicts grind higher after selling climax, with a possible pullback before continuation.
XRP has been stuck in neutral, hovering around the $0.50 mark for the past day. This stagnation comes after a period of upward momentum, prompting analysts to question the immediate future of the token.
The analyst from the YouTube channel Pip Snipers said that after the grind to the upside, you usually see a failed break, a check back, and then a continuation, he recently offered a detailed breakdown of XRP price forecast.
Higher Lows Point to Underlying Strength?
The analyst acknowledges a recent “selling climax” and a “flush” in XRP’s price. However, they highlight that XRP continues to establish “higher lows,” a technical indicator suggesting underlying strength despite the price drop. This pattern, the analyst explains, is often seen in markets with high leverage, where volatility can be amplified before a definitive move up or down.
Fibonacci Retracement and Trend Line Liquidity
Zooming into the bigger picture, the analyst points to XRP price forecast and it’s action since the beginning of 2023. They identify a five-wave uptrend followed by a corrective “WXY” pattern. Notably, the correction found support at the 70.2% Fibonacci retracement level, historically a common turning point for XRP.
This level, the analyst explains, coincides with a zone of “trend line liquidity,” where buy orders are often placed in anticipation of continued price rises. However, to confirm a sustained upward move, the market often needs to “flush out” these buy stops before a decisive climb.
Selling Climax and the Road Ahead
The analyst compares the current situation to past XRP price movements. They point out that previous instances saw a similar “selling climax” followed by a short-lived rally, a retest of the lows, and then a renewed upward grind. This suggests a potential repeat, where XRP might experience a period of consolidation before resuming its climb.
The analyst remains optimistic about XRP’s performance in 2024, believing the current price action represents a potential bottom. Following the recent price swings, they predict a gradual rise, a brief pullback, and then a continuation of the uptrend.
While this analysis offers a bullish outlook, it’s important to remember that cryptocurrency markets are inherently volatile, and unforeseen events can disrupt any prediction.
