XRP Analysis: Liquidity Grab in Play?

In our previous XRP analysis, we discussed waiting for the liquidity below to be taken. That scenario still holds. Right now, price is approaching an M5 supply zone, which could be the trigger for a strong reaction.

In a recent post on FXStreet, technical analyst Ben Armstrong provides his analysis of XRP's price action and the key levels to watch.

According to Armstrong, price is approaching an M5 supply zone, which could be the trigger for a strong reaction in XRP.

"If we zoom in from H1 to M15, we can spot two key things: 1) price is approaching an M5 supply zone, and 2) there’s a lot of liquidity to be swept in M1. And we know how this usually plays out—liquidity gets hunted before the real move begins."

As such, once this lower level of liquidity is taken, we can expect to see a continuation of the uptrend, with the next level of resistance coming at the M15 demand zone, or at least the Fib 38.2. A break below the Fib 23.6 could also cancel the uptrend.

"For now, I’m sitting on the sidelines, waiting for the right setup. Let the market come to you—don’t chase trades.

Are you waiting for the same liquidity grab, or do you see something different?"

In his previous analysis, Armstrong noted that XRP bulls were struggling to break through the H1 resistance level, which could lead to another round of selling pressure.

"If the sellers can manage to push the price back below the Fib 23.6, then we could see a retest of the Fib 50 at around $0.40. However, if the bulls can hold the line and break through the H1 resistance, then we can expect to see a continuation of the uptrend, with the next level of resistance coming at the Fib 38.2 or the M15 demand zone."

Overall, XRP is showing signs of strength, but it will be interesting to see if the bulls can overcome the H1 resistance level and continue the rally.