XRP Price Prediction: Same Pattern, Same Rules

If you’ve been following my XRP analysis, you probably saw this move coming. In our last article, “XRP Price Prediction: Next Big Move After CPI Drop?

XRP price is displaying a classic technical pattern that could lead to a breakout in either direction. Here's a quick analysis to help you understand the possibilities.

As you may recall from our previous XRP analysis, we highlighted the buildup of liquidity above the price, indicating a potential for a price surge.

Now, let's zoom in on the H1 timeframe. XRP price encountered a demand zone and bounced off it, as we anticipated. Following this reaction, the price ascended to encounter a supply zone on the H4 timeframe.

This price action aligns with a common market behavior pattern, which we'll break down for you:

The market gathers liquidity to fuel its next move.

In the process of moving, it leaves behind more liquidity, providing a reason to revisit that price level.

As a result, we often observe a scenario where price gathers liquidity on its way up (creating a supply zone) and then drops to collect liquidity below (creating a demand zone).

Now, considering XRP's price movement, two scenarios emerge.

Scenario 1: XRP Price Continues to Rise

If the price continues to push up, clearing the remaining liquidity above, it could lead to a continuation of the rally.

Scenario 2: XRP Price Encounters Resistance at M30 Supply Zone

Alternatively, if the price reacts to the M30 supply zone, it might lead to a drop, aiming to collect liquidity below before another move higher. This setup carries more risk, but it remains a possibility.

Ultimately, the market's behavior will dictate the next move. Keep an eye on how XRP price interacts with the M30 supply zone. If it bounces off, we may witness a drop first. Conversely, if it breaches the zone, the next leg up could be on the horizon.