Ripple’s native token XRP has formed a bullish inverse head and heel price action pattern. This bullish prediction for XRP is gaining significant attention in the crypto community. However, this perspective came after a month of continuous battles and the recent victory against the U.S. Securities and Exchange Commission (SEC).
XRP Price Prediction
According to expert technical analysis, XRP looks bullish as it is trading above the 200 Exponential Moving Average (EMA) on the daily time frame. The price of the asset above the 200 EMA suggests that it is in an uptrend.
In addition to XRP’s uptrend, an inverse head and shoulders price action pattern has also formed. Based on the historical price momentum, there is a high probability that if XRP breaks out of this price action pattern and closes a daily candle above the $0.65 level, it could surge by 15% and reach the strong resistance level of $0.75.
The $0.75 level will act as a strong resistance as XRP has reached this level three times since 2023, facing significant selling pressure each time. However, there could be a significant recovery if XRP manages to break this level.
XRP’s rising open interest
Following this bullish price action pattern, XRP’s open interest has skyrocketed by 12% and is gradually increasing, according to on-chain analytics firm CoinGlass. This indicates growing interest from investors and traders as XRP approaches the breakout level.
At press time, the price is trading at $0.63 and has seen a price increase of over 5% in the last 24 hours. At the same time, the trading volume has increased by 30% in the same period, indicating higher participation from traders.
Important Liquidation Levels in XRP
Currently, the key liquidation levels are around $0.596 on the lower side and $0.651 on the upper side as traders have been using too much leverage over the past 24 hours, according to data from CoinGlass.
If the market sentiment remains the same and the price rises to $0.651, short positions worth nearly $11.81 million will be liquidated. Conversely, if the sentiment changes and the price drops to the $0.596 level, long positions worth nearly $22.90 million will be liquidated.
This shows that the bulls are back in the game and it is very likely that XRP will break out and reach the $0.75 mark.
