XRP Price Prediction Bulls Expected to Step Aside Soon as Signs of Flush Down and Selling Climax Emerge
XRP has remained relatively stable, showing little movement over the last 24 hours. A market analyst from the popular YouTube channel ‘Pip Snipers’ recently uploaded a video offering an in-depth technical analysis of XRP’s price trajectory, discussing why bullish investors may need to exercise patience for potential gains.
The analyst pointed out that following an upward grind, it is common to see a failed breakout, a pullback, and then a resumption of the trend. Despite a selling climax and market flush, XRP has continued to establish higher lows. This pattern is typical in markets that are heavily leveraged, often leading to false signals and market manipulation before a definitive move in either direction. Presently, XRP is being traded at $0.50, showing positive movement in the market.
Since the start of 2023, XRP has displayed a five-wave upward movement, forming an ascending broadening wedge with the fifth wave peaking at the 1.236 level before undergoing a correction in the form of a WXY pattern for Wave 2. Wave 2 retraced precisely to the 70.2% Fibonacci level, where significant buy orders from large investors were executed.
The 70.2% and 78.6% Fibonacci levels are commonly targeted retracement points before a potential reversal, especially in the case of XRP. Following the 70.2% retracement, XRP consolidated, went through another market flush, and then gradually started moving upwards.
This market behavior indicates a trend line liquidity, where buy orders are accumulating beneath the trend line as investors anticipate a continued upward movement. However, the market typically needs to clear out these buy orders before resuming its upward trajectory.
In a similar fashion to previous instances, the trend line liquidity is cleared out, reaching the 78.6% retracement level before gradually moving higher. Upon closer inspection, a major liquidation event involving Bitcoin resulted in a selling climax, followed by an automatic rally, a secondary test of the lows down to the 78.6% level, and then a consistent upward grind.
This market pattern involves a flush down to a selling climax, an automatic rally, a secondary test of the lows, and significant retracement levels before continuing the upward trend. The analyst is optimistic about XRP’s performance in 2024, believing that the current market structure signifies a bottom. Following the selling climax, automatic rally, and secondary test, he predicts a gradual upward movement, a brief pullback, and then a continued upward trend.