- XRP was up nearly 30% in December but consolidated above $2.3.
- Here’s what could happen before XRP eyes $3 or 2021 highs.
After a 280% upswing in November, Ripple [XRP] extended the uptrend in early December with an extra 30% to $2.9.
But the altcoin’s rally has slightly cooled off in the past few days, marking $2.3 as a crucial short-term support. What are the possible scenarios for the XRP price after the cool-off?
XRP’s next moves
Source: XRP/USDT, TradingView
On the lower timeframe chart, XRP has defended the $2.3 support since December 2nd. If the short-term support holds, XRP could retarget the recent high of $2.9 or blast above $3 to the 2021 cycle top of $3.3.
The RSI reading on the 4-hour chart supported the above scenario. It defended the neutral 50 mark, reinforcing that demand was substantial for the altcoin.
However, there weren’t strong short-term capital inflows to confirm the bullish bias, as illustrated by the neutral reading on CMF (Chaikin Money Flow).
A decisive move above the median mark could reinforce XRP’s odds of eyeing $3 or 2021 highs.
That said, XRP’s market structure was still solid based on the higher timeframe charts.
On the weekly charts, price momentum was strong (yellow line above 20), with buyers (green) having the upper hand as shown by the DMI (Directional Movement Index).
Source: XRP/USDT, TradingView
However, a crack below $2.3 could probably push XRP to the next support and Golden ratio at $1.5.
Liquidation heatmap insights
According to Coinglass liquidation heatmap data, there were pockets of liquidity on either side of the price action.
On the upper side, leveraged shorts piled above $2.6 (bright orange levels).
On the contrary, the lower-side liquidity at $2.53 was recently tapped.
But market makers hadn’t tapped other lower liquidity levels at $2.45 and $2.38. If so, leveraged longs at these levels could be liquidated before XRP pushes forward.
Source: Coinglass
Read Ripple [XRP] Price Prediction 2024-2025
So, driven by liquidity sweep, the XRP price could slide to $2.45 or $2.38 before eying upper targets above $2.6.
However, since $2.3 doubled as short-term support, a decisive move lower could dent the short-term bullish outlook.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
