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$XRP might be on the verge of a potential price breakout targeting the $3 spot based on its short-term technical setup.
To this end, the asset’s recent price action, where $XRP tested the $2 support, is forming a bullish structure, signaling a possible “buy-the-dip” opportunity, according to an April 5 analysis by ImmortalAXS on TradingView.
The analyst noted that $XRP recently experienced a liquidity sweep, dipping below previous lows into a known support zone around $2.
This move, often referred to as a “Swipe Liq / Adding more,” is a common tactic to trap sellers and collect liquidity before a sharp reversal. True to form, $XRP quickly rebounded, suggesting a strong bullish reaction.
The analyst noted that a developing triple bottom pattern at the $2 support level further strengthens the case. Each dip into this zone has been met with aggressive buying, indicating heavy accumulation by market participants.
This repeated defense of the $2 area reinforces its importance as a key support level and sets the foundation for a potential upward move.
Now, the next major hurdle for $XRP lies at $2.48, a strong resistance zone that has been rejected twice. Therefore, a clean break and hold above this level would mark a shift in market structure, flipping resistance into support, and could signal the start of a bullish continuation, especially if backed by volume and momentum.
If $XRP convincingly breaks through $2.48, the next targets to watch are $3 and $3.40. These levels are psychological milestones and technically significant zones, aligning with previous price reactions.
However, a clear invalidation point remains; a close below $1.79 would break the current structure and suggest sellers are back in control. This level is a critical stop-loss zone for traders looking to manage risk.
Investors bullish on $XRP price
Currently, $XRP is trading in line with the broader cryptocurrency market, which remains subdued amid equities reeling from the recent traffic-induced sell-off.
Amid these conditions, on-chain data again indicates that most $XRP investors are betting on the asset’s price rallying.
Specifically, data shared by prominent on-chain crypto analyst Ali Martinez shows that Binance futures trading data reveals that 70.33% of traders with open $XRP positions are long, pointing to a strong bullish sentiment surrounding the cryptocurrency.
The data, shared on April 6, shows that only 29.67% of accounts are short, resulting in a long/short ratio of 2.37. This shift in sentiment could suggest growing confidence in $XRP’s price potential.
$XRP price analysis
By press time, $XRP was trading at $2.07, having plunged 3.6% in the last 24 hours. Over the past seven days, the token is down nearly 4%.
As things stand, $XRP is sitting above its 200-day simple moving average (SMA) of $1.76 but below the 50-day SMA of $2.38, suggesting long-term strength but short-term weakness.
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