XRP shows signs of recovery as momentum improves, but stiff resistance exists on the upper end of its daily Ichimoku Cloud.
XRP is showing steady upward momentum this week, posting a 1.5% gain over the past 7 days as it continues to recover from recent market volatility. The latest 7-day chart reveals a strong rebound from sub-$2.00 levels, with XRP climbing back toward the upper end of the range. Over the past 24 hours, XRP has traded between $2.06 and $2.28, demonstrating increased buying pressure as bulls attempt to regain control.
The price action shows a clear shift in sentiment: after an early-week decline, prices have been steadily trending higher, forming a series of higher price levels, although key resistance levels are yet to breach. This positive ascent has left analysts and traders watching closely for confirmation of a sustained breakout.
XRP Price Analysis
On the technical end, the latest XRP daily chart shows the token attempting to regain bullish momentum after a sharp mid-November sell-off, but several key technical signals suggest XRP is still at a critical juncture. Looking at the Ichimoku cloud, the price remains below the cloud, which means it is acting as overhead resistance.
The lower boundary of the cloud sits around $2.24, while the upper boundary extends toward $2.38. As long as XRP trades below this zone, it serves as the resistance the crypto asset needs to breach to reach levels like $2.8.
If the resistance is stiff enough, XRP will test support at $2.06, where the Tenkan-sen (blue line) is based. However, for further confirmation of the upward momentum, the Tenkan-sen line must flip above the Kijun-sen (red line).
Despite this overhead resistance, early signs of momentum improvement are emerging. The RSI (14) is currently at 47.83, recovering from oversold territory but still below the neutral 50 level. This indicates weakening bearish momentum, though not yet enough to confirm a shift toward bullish control. A move above 50 would signal strengthening buying pressure and support the case for a breakout attempt.
XRP Liquidation Data
Meanwhile, the XRP liquidation data reveals a clear shift in market dynamics, with traders on both sides facing significant wipeouts. Short positions are however taking increasingly heavy losses over longer timeframes.
Over the 4-hour period, liquidations climbed to $989.38K, and while longs still accounted for a larger share ($547.12K), short liquidations increased substantially to $442.26K, showing stronger two-sided volatility.
The shift becomes more pronounced in the 12-hour window, where total liquidations hit $3.13M, and short positions suffered nearly half a million dollars in liquidation, indicating that sellers betting on downside began getting squeezed as XRP recovered.
The most telling data appears in the 24-hour period, where XRP saw a massive $13.54M in liquidations. Critically, shorts absorbed the majority of the damage, with $8.66M liquidated compared to $4.88M from longs. Overall, the liquidation profile suggests that bearish traders are increasingly being forced out of their positions.
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.
