- XRP’s price has registered high volatility over the past month
- Its trajectory in the coming weeks might be a move below $2
XRP bulls faced the prospect of defending the psychological $2 support level for the second time in two weeks. However, it came out of the ordeal successfully. And yet, the higher timeframe swing structure has shifted bearishly thanks to the most recent southbound move.
The on-chain metrics flashed a mixed result, with the same hinting at bearish continuation on the charts. The hike in XRP dominance and growth in risk-adjusted returns meant XRP retained a long-term bullish outlook. Additionally, the daily timeframe chart revealed that traders need to be aware of a downward move.
Decoding XRP’s rapid structure shifts
Source: XRP/USDT on TradingView
In green, the bullish structure break on Sunday, 2 March, was highlighted. The red level highlighted the bearish structure flip as XRP fell below the most recent low. Zooming out a bit, the swing structure seemed to have its higher low at $2.05 (dotted orange).
A daily session close below this level meant that the swing structure and sub-structure were both bearish. This would likely lead to further XRP losses. The 61.8% and 78.6% retracement levels at $2.58 and $2.76 would be key resistances to watch in the coming weeks.
Meanwhile, the technical indicators suggested mixed results. The DMI reflected a bearish trend in progress with the -DI (red) and ADX (yellow) above 20. The Awesome Oscillator was below zero, highlighting downward momentum.
And yet, the CMF was at +0.08, meaning capital inflows were significant and buying pressure was present.
Source: Coinglass
The 1-month liquidation heatmap revealed that the $2.36 zone had been a notable liquidity cluster. XRP did not see a bearish reversal there. In the coming days, the $2.5-$2.55 and $2.7 regions would be the next magnetic zones for the price.
They seemed to line up well with the Fibonacci retracement levels highlighted previously. Hence, in the coming days, traders can expect a price bounce towards $2.7-$2.8. This would likely be met with a bearish reversal in the coming weeks. The rapid structure shifts over the past month served as a warning about potential XRP volatility in the coming weeks.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
