XRP Price Analysis: Will History Repeat Itself as XRP Forms a Range?

XRP formed a range between $2.95 and $3.23, with the mid-range level at $3.1. The XRP Ledger’s upgrade of the AMMClawback amendment for better regulatory compliance

XRP’s price action over the last few days has been largely dictated by the range it formed between $2.95 and $3.23. At the time of writing, XRP’s price hovered around the mid-range level at $3.1. An upgrade to the XRP Ledger saw the AMMClawback amendment go live to enhance regulatory compliance for AMM pools.

Now, while XRP’s token price struggled, buyers were expected to defend the $2.9-$2.95 demand zone. In fact, in a recent analysis, AMBCrypto highlighted how the $3.2-level posed a short-term threat to the bulls.

This was realized when XRP’s price was rejected at $3.15 on 30 January.

Could XRP’s December range formation be revisited?

Source: XRP/USDT on TradingView

In early December, XRP’s price saw a strong surge from $1.88 to $2.9. Following this surge, XRP’s price saw a period of consolidation within a range, with lows at $2 and highs at $2.62. The range lows were tested twice, once with a deviation below the low, before XRP’s price began to trend up in earnest.

In light of this, it was possible that we could see another retest of the lows and some consolidation around the mid-range level before the next move higher. A significant deviation below $2.95 had already occurred a week prior.

At the time of writing, trading volume was low and a strong move could not be expected over the next week or two. A reclaim of the mid-range level as support would present a buying opportunity.

Source: Coinglass

The 1-month liquidation heatmap highlighted the $3.2 and $3.45 levels as strong magnetic zones to the north. The price was likely to be attracted to these levels, particularly $3.45, where it could register a bearish reversal.

Source: Coinglass

XRP’s market cap in BTC’s terms – Realistic or not

The past week’s liquidation heatmap highlighted $3.2 as a short-term bullish target. A retest of the $2.95 demand zone would present a buying opportunity for XRP traders, targeting $3.2.

However, a drop below $2.9 would invalidate this bullish outlook.