As the second quarter comes to an end, XRP's price movement may be preparing for a surprising breakthrough. This altcoin has remained below $2.50 for over a month, but new technical indicators are showing positive potential.
While the broader cryptocurrency market is consolidating, XRP is quietly building bullish momentum. This analysis provides the details.
Traders Watching XRP Rally
XRP's liquidation heatmap shows significant liquidity concentration around the $2.20 price level. At the time of reporting, the token is trading at $2.14, which is 2.8% below this liquidity cluster.
The liquidation heatmap is a visual tool used by traders to identify price levels with a high probability of leverage positions being liquidated. This map highlights high liquidity areas, often distinguished by color to indicate intensity, with brighter areas representing a higher likelihood of liquidation.
These liquidity areas act like magnets for price movements, naturally drawing the market to execute stop orders and open new positions.
For XRP, the liquidity cluster around the $2.20 level emphasizes strong trader interest in buying at that price or liquidating short positions. As bullish momentum builds, this setup increases the potential for a short-term rally.
Furthermore, the decline in XRP's Network Realized Profit/Loss (NPL) supports this bullish outlook. At the 30-day moving average, it is positioned at $70.27 million, decreasing by 11% last week.
NPL measures the total profits or losses realized when investors move their coins. When NPL falls into the negative area, it indicates more holders are moving tokens at a loss rather than a profit.
Historically, this trend reduces selling pressure because investors are reluctant to abandon assets while in a loss state. For XRP, the recent NPL decline suggests most holders are waiting for a rebound rather than realizing losses.
XRP Eyeing Bullish Target of Breaking $2.29
At the time of reporting, XRP is trading at $2.13. With increasing buying pressure and the altcoin breaking out of its consolidation trend, it could rally to $2.29.
Successfully breaking through this price level could prepare XRP for a rally to $2.45.
However, if selling pressure surges, the XRP token price could extend its poor performance, dropping to $2.08. If demand is low at this point, the altcoin could further decline to $1.99.
