- XRP price reveals potential for a 75% rally should the crypto markets turn around.
- However, a breakdown of the $0.324 support floor could result in a steep 25% correction.
- Investors can make an informed decision based on how Ripple reacts to the 2022 volume point of control at $0.324.
XRP price shows a tight consolidation that could potentially indicate an explosive move in the making. Correctly identifying the direction and timing of the breakout could result in massive gains for investors.
Let’s take a look at the potential outcomes and how to prepare for them.
XRP price prepares for an explosive breakout
XRP price, on a 1-day chart, shows that it is hovering just above the 2022 volume point of control (POC), aka the highest volume traded level, at $0.324. It has been doing that for roughly two months.
Even before the consolidation below the $0.381 level and above the POC at $0.324, XRP price was ranging between May 11 and June 10 below $0.450.
However, looking at the volume profile for 2022 reveals that there is sparse volume up to $0.595 or roughly $0.600. Hence, a breakout is more inclined to move to the upside, especially if bulls can manage to overcome the $0.389 to $0.377 support area.
This development could allow XRP price to move straight to $0.50, where another resistance barrier is present. Overcoming the aforementioned level will have enough momentum to push the altcoin higher and reach its upside target at roughly $0.60.
In total, this move would constitute a 75% gain from the current position at $0.324.
XRP/USDT 1-day chart
While the above scenario makes sense, investors need to consider the possibility of a drawdown. A breakdown of the 2022 volume POC at $0.324 would be an extremely bearish development for the remittance token.
In such a case, XRP price could crash 25% to $0.231, which is the only stable footing to absorb the incoming selling pressure. Therefore, if investors manage to long XRP price from the current position, it would result in a trade with high risk and a higher reward.
The confirmation of a bullish trade will occur if Bitcoin price sweeps the $20,750 support level or manages to stay above the $20,000 psychological level. In this case, market participants can open a long position for XRP price.
However, if Bitcoin price flips the $19,000 support level into a resistance barrier, it will indicate that things are gearing for a steep correction. In such a situation, XRP price could crash by 25% to $0.231.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Prisma price tanks 25% after nearly $9 million exploit
Prisma Finance (PRISMA) is being exploited, and the attacker has so far pulled $9 million in Ethereum from the borrowing protocol. Prisma asked vault owners to take the necessary steps to protect funds from the ongoing attack in an official tweet on X.
Meme coins gain traction after SEC’s partial win in Coinbase lawsuit: DOGE, SHIB, BRETT, POPCAT, BODEN
US SEC pocketed a partial win in its lawsuit against Coinbase, ushering a correction in crypto prices on Thursday. Despite the broad pullback, prices of meme coins like Dogecoin, Shiba Inu and Solana-based BRETT, POPCAT and BODEN increased.
Ondo moves $95 million worth of OUSG assets to BUIDL as tokenized fund attracts $245 million since debut
Ondo Finance (ONDO) announced on Wednesday that it's shifting about $95 million worth of its OUSG's underlying assets to the BlackRock USD Institutional Digital Liquidity Fund (BUIDL).
XRP price stuck below $0.65 resistance, Ripple lawsuit could suffer from Coinbase defeat
XRP price falls slightly to $0.61 on Thursday after its landmark programmatic sales ruling in July, which gave Ripple a partial victory against the US SEC, failed to reverberate in a similar legal battle between the regulator and crypto exchange Coinbase.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.