This suggests that XRP may have bottomed out – its next target is $ 1.2

XRP has rallied quickly in the past few days, reaching resistance at the $ 1 mark. This is a circular numerical resistor and supply zone. A rejection at this level and retesting at $ 0.886 would likely be a buying opportunity targeting the $ 1.1 liquidity cluster.

Source: TradingView

XRP climbed above resistance on a trendline (white) in use since early November before the breakout, XRP repeatedly tested the USD 0.75 area (lower blue box) for buyers. This is where XRP is likely to find demand based on price movements from August onwards.

If you graph the Fibonacci retracement levels to show the recent swing highs and swing lows of XRP, you can see that this area of ​​demand also coincides with the 23.6% Fib retracement level at $ 0.776. The top blue box, another important area of ​​the past few months, coincides with the 38.2% Fib retracement level.

SMA 21 (orange) and SMA 55 (green) are on the verge of forming a bullish crossover, again in the $ 0.886 area. The crossover, if it occurs, will further highlight the vital supportive role of this area.

Source: TradingView

The search for liquidity and a surge to $ 1 came across a selling wall. $ 0.886 represents the next area of ​​strong liquidity that buyers are likely to step into. Chaikin’s cash flow above +0.05 indicates an inflow of capital into the market.

RSI was rejected near 70. Previously, a move above 70 and retest of 72 resulted in XRP rallying 33% in just a few days in August. Hence, rising the RSI above 70 is a necessity.

Areas of supply and demand are labeled $ 1 and $ 0.886, respectively. While a retest with a subsequent strong move towards $ 1.1 on the XRP price chart seems possible, Bitcoin remains a major player. BTC has been bullish in the lower time frames, but there remains overhead resistance that the bulls most likely will not overcome all at once.

Hence, switching to $ 1 XRP could result in a retest of $ 0.886. If the 12H RSI crosses the 70 mark, bulls can make further gains.

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