- XRP sees its price consolidating once more, indicating a possible repeat of actions from 3 February to 8 February.
- Holders may expect alt to gather untapped liquidity around the $1 level.
- Losing the support floor t $0.746 will annul XRP’s bullish hypothesis.
Ripple highlighted downside signals on 20 February, but bears could not follow through, revealing ongoing consolidation actions. For now, the remittance coin appears to coil up, mimicking price actions seen between 22 January and 3 February. Meanwhile, market players may witness the altcoin experiencing explosive movements.
Ripple Awaits Volatility
XRP price saw a 55% rally after coiling up from 22 January to 3 February. The explosive price actions printed many swing peaks around $0.915 before triggering retracements towards the support floor of $0.746, translating to the 2nd consolidation phase.
Therefore, market players should watch the remittance currency as XRP might experience another breakout. The crucial price zones to consider are $0.855, $0.917, and $1.02. That is because the value areas have buy-stop liquidity beyond them.
Surprisingly, on-chain volume displayed a significant climb from 1.95 billion on 16 February to 4.35B on 20 February, regardless of the latest consolidation. The 123% surge in on-chain volume shows lucrative price actions from the cross-border token, backing the potential upside surge.
Also, the 365-day MVRV at about -14% highlights the bullish move potential. The metric determined average losses/profits by investors that purchased Ripple within the previous year. A negative reading shows holders that bought the token within the past year stay underwater.
With that, they may not sell whenever prices surge. Also, long-term investors accumulate at these value zone, showing that breakouts from the consolidation can lead to significant gains.
Though the bullish picture appears plausible, a surge in selling momentum that makes Ripple form a 12hr candle close under $0.746 will cancel the bullish thesis.
Such scenarios might see the selling momentum pushing the asset to fill the FVG before retesting the support level of $0.679. Meanwhile, Ripple buyers have to protect the support floor at $0.746 to keep the bullish thesis alive.
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