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HomeCrypto NewsMarketXRP Breakout Explained as Analyst Identifies New XRP Profit-Taking Zone

XRP Breakout Explained as Analyst Identifies New XRP Profit-Taking Zone

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Market analyst Arthur identifies a new XRP profit-taking zone amid the recent 10% price surge and subsequent pullback.

XRP captured market attention over the weekend with a surprising rally that pushed its price up nearly 10% on Saturday, Jan. 11. This surge marked a retest of the $2.60 resistance level, a price XRP hadn’t approached in a month. 

However, the upward momentum faced a pullback shortly after, leaving market participants wondering what could come next. Arthur, a seasoned market analyst, shared his perspective on the breakout, the pullback, and potential future movements for XRP.

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XRP Breaks Above Symmetrical Triangle 

Arthur described the weekend rally as a bullish breakout from a symmetrical triangle pattern on the daily chart. Such patterns typically lead to major price moves, and XRP’s breakout aligns with increasing momentum and volume. 

Despite the promising setup, the market analyst noted that confirmation of the uptrend is important before investors fully commit.  According to him, this could happen through price stability above key levels.

He called attention to XRP’s trading volume during the ensuing pullback. While volume increased, it didn’t surge to extraordinary levels, which could indicate hesitation among sellers. 

Similarly, the current pullback has shown relatively low trading volume, suggesting it might be a temporary correction rather than the start of a bearish reversal. This adds weight to the theory that XRP could continue its upward trajectory once the market digests recent gains.

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However, The Crypto Basic recently confirmed that XRP Open Interest in the derivatives market has surged to a new peak above $5 billion during the correction. 

Arthur also highlighted the relative strength index (RSI). At 59.72, XRP’s RSI indicates moderate bullish sentiment. Importantly, it remains below the overbought threshold of 70, signaling that there is room for further price appreciation. 

XRP Profit-Taking Zone

Meanwhile, the analyst identified several key levels that traders should monitor. On the downside, $2.50 is an important support level, as it was the previous resistance before the breakout. 

According to him, if this level fails to hold, deeper support zones at $2.20 and $1.80 could come into play. On the upside, $2.80 is the next significant resistance target, followed by the psychologically important $3.00 mark. Arthur noted that these levels serve as profit-taking zones for investors.

Arthur presented two potential scenarios for XRP’s near-term direction. If the asset successfully retests $2.50 as support while maintaining momentum, it could rally toward $2.80 or even $3.00. 

On the flip side, if selling pressure increases and XRP falls back into the symmetrical triangle, it could retrace to $2.20 or $1.80. In either case, the analyst urged traders to monitor volume.

He also discussed the importance of liquidity zones, essentially areas where significant trading activity occurs. Between $2.80 and $3.00, Arthur identified an upper liquidity zone where many short sellers might have placed stop-loss orders. 

If breached, these levels could trigger additional buying pressure, pushing prices higher. Conversely, the lower liquidity zone between $2.20 and $1.80 could act as a magnet for accumulation if prices dip, setting the stage for a rebound.

Despite the pullback, Arthur remains optimistic. The rally demonstrated bullish momentum, but confirmation at key levels remains essential. At press time, XRP has broken below $2.50, now trading for $2.44 amid a 3.45% drop in the past 24 hours.

DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

Author

Sam Wisdom Raphael
Sam Wisdom Raphael
Sam Wisdom Raphael is a seasoned crypto news writer and journalist with 5 years of experience covering blockchain, DeFi, and crypto developments. Sam's active presence in the crypto community complements his deep understanding of the crypto space, allowing him to craft comprehensible price analysis reports and tackle technical blockchain concepts.

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