Crypto market analyst Steph is Crypto recently discussed a number of indicators that suggest XRP could be on the verge of a major rally.
A community expert revealed these metrics in one of his extensive XRP analyses. He used chart data to highlight major support and resistance levels, as well as indicators that show the potential for a bullish uptrend in XRP.
XRP key support
Stephin your video “XRP: WHAT THEY DON’T WANT YOU TO SEE!!” noted the importance of XRP’s current support near the $0.50 mark on the weekly chart. Over the past few years, this level has repeatedly served as a point of support and resistance. this is critical to maintaining XRP’s momentum.
According to Steph, past price action has shown that a break below this range could weaken XRP’s position, so holding above this range is important for the altcoin to maintain optimism.
He also discussed the major support zone in the volume profile, which shows the cluster of buying activity that has historically supported the XRP price. Currently, level $0.50 also corresponds to the Fibonacci retracement level of 0.5, which enhances its significance.
Downtrend line resistance
Another factor that the analyst identified was descending resistance line formed from mid-2023. This trendline has repeatedly limited XRP’s attempts to rise, marking several resistance points over the past few months.
Steph believes that a break above this trend line would likely mark an impressive bullish breakout, paving the way for XRP to break through current levels.
Considering that XRP is down 16% this year, if it manages to break through trendline resistance, it will confirm a shift in market sentiment towards bullishness. Steph identifies a key resistance zone from 0.67 to 0.68 US dollarswhich represents the golden Fibonacci ratio as the breakout point.
XRP Liquidity and Short Squeeze Potential
Steph also discussed the concentration of short positions in the range of $0.66 to $0.67, citing data XRP liquidation heat map.
Due to the large number of stop losses and liquidation points clustered in this area, XRP could experience a short squeeze if the price breaks through current resistance. In this case, short sellers will be forced to close their positions, which will further increase the price.
The market often gravitates towards highly liquid zones that currently correspond to short XRP positions. As Steph explains, this creates an environment where upward movement can trigger a chain reaction of buying pressure.
XRP accumulation by whales and historical recovery
Meanwhile, XRP’s Accumulation Distribution (AD) indicator, which tracks the buying and selling patterns of large investors, is strengthening the altcoin’s bullish position.
Steph noted a noticeable increase in whale concentrations. big players are buying up XRP despite the sideways movement of its price. This behavior often precedes large rallies, as was the case in 2017 and 2020.
The current situation is similar to previous accumulation phases, suggesting that the whales are preparing for a potential breakthrough. Steph believes this accumulation, coupled with the sharp price squeeze, points to a potential significant bullish move.
It also brought attention to the history of XRP. overcoming a sharp drop in prices. The altcoin has experienced sharp declines in the past, including a 95% decline from 2014 to 2017 and a 96% decline from 2018 to 2020, before recovering with strong gains.
XRP is currently down about 85%. Steph notes that with the accumulation of whales and increasing price compression, XRP may be poised for a recovery again.
XRP is currently trading at $0.5142, up 1.05% this month amid a moderate recovery. This rebound follows a 16.74% decline in October, despite BTC recording a 14% gain in the same month. XRP needs to hold above $0.50 and target the $0.66 region to turn the tide.
