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Consolidation of XRP price above a significant demand zone hints at two things: bulls have regained strength, and buyers waiting on the sidelines may activate on the wave of FOMO.
With the price of XRP crashing from its all-time high, it looks like it has formed a descending parallel channel that has provided support. Interestingly, the first 3-day close above the average trendline price often resulted in additional price spikes of at least 20%.
On February 9, in just one day, the price of XRP rose by 39%. This significant bullish momentum appears to have been caused by stop-loss orders placed exactly on the channel’s mid-trend line.
Starting from the week of February 9th, there was a sell-off that saw the XRP price return to previous support levels. Investors wasted no time adding more discounted tokens to their positions, with prices consolidating above critical support.
Even though the price of XRP is technically still in a downtrend, it should be considered as one of the best digital assets for early entry. Orders placed in the buy zone between $0.64 and $0.68 may never fill as market makers may instead challenge short-term sellers at $0.90.
In this case, it is wise to make early purchases, although it is worth noting that a sell-off can still occur. It might be better to place a protective stop below the swing low at $0.62.
A break below $0.62 would invalidate the bullish thesis. If this happens, XRP price is likely to challenge the $0.54 low and possibly set a lower low in the $0.44 range towards the opposite side of the parallel channel.
#Maintaining #positive #momentum #send #XRP
