XRP Could Break Out, but Not Immediately Due to External Factors: Analyst

Bitcoin's upcoming move in the next few hours is very important for the broader sentiment to change

The upcoming Bitcoin move in the next few hours is crucial for the broader sentiment to change.

With the market uncertainty, it is crucial to avoid excessive leverage. The decision, whether a 0.25% or 0.5% rate cut, will have a major impact on the markets. However, amid all the chaos, the question whether XRP could break out toward higher levels still remains a mystery.

According to analyst Cheeky Crypto, yesterday's target range for XRP was set between 59.48 and 60 cents, aiming for a double top similar to Saturday's price movement. However, XRP peaked at 59.34 cents before pulling back.

This pullback occurred after finding support at the 50 EMA and SMA levels. Now, there's an impulsive breakdown. It's possible XRP is in wave four, with a structural target between 57.17 and 57.42 cents, which might align with support at the 200-hourly EMA.

Within the price structure, a five-wave drop suggests an irregular flat pattern (ABC) for wave four, overlapping with wave one, pointing to a diagonal structure in wave five. The target range for the potential double top is 59.54 to 60.16 cents.

Despite the XRP chart showing higher lows and lower highs, which generally suggests a bullish breakout, he doesn't expect an immediate rise to the 75 to 85 cent range due to external factors.

The analyst also noted a possible loss of the 50% level, with a retest of the lower trendline being likely before any major breakout occurs. Although there may be temporary stability or upward movements in the coming days, overall market liquidity remains low. This liquidity crunch, combined with external factors like interest rates, unemployment rates, and money supply, suggests selling pressure could increase.