Crypto analyst Armando LaVerdad had first called out an interesting setup in the XRP price chart over the weekend. This had to do with both liquidity and the formation of a bull flag that both pointed to rising interest in the digital asset. As a result, the bulls have remained firmly in control, and this could signal that the XRP price is ready to continue its rally.
XRP Price Indicators Point To Possible Price Rise
In the first post, the crypto analyst pointed out an important liquidity overhang that could pull the XRP price upward. This liquidity overhang sets the groundwork, as the liquidation heat map showed that there were billions in liquidations stacked between $3.8-$4. This suggests that there is a high possibility for the XRP price to rocket towards this level for whales to take out the liquidity.
Another interesting thing was the Bullish Flag formation that had shown up on the daily chart. Bullish flag formations are simple formations that have often preceded a rise in price. For the XRP price, it was nearing the end of the bullish flag structure, while consolidation tightened and the asset began to test the upper trendline.
Other bullish factors came in the form of indicators actually turning toward the green once again. This ranged from the MACD moving upward as momentum shifted toward the positive to both the RSI and Stochastic RSI moving from oversold zones. Naturally, this suggests that there is strength budding underneath the surface to uplift the XRP price.
Break From Descending Trendline Puts The Move In Motion
In a follow-up post, the crypto analyst shared that the XRP price had actually broken the descending trendline, which it had been previously testing. The break of this descending trendline, coupled with the volume confirmation, carries major bullish implications for the cryptocurrency.
Currently, there is now heavy support for the XRP price at $2.8-$2.95, making it the level to beat for bears. However, if the bulls are able to continue holding this level, then the analyst expects the XRP price to hit the first target of $3.20-$3.25, an over 10% increase in price.
Next in line would be the major target of $3.50 being hit. This target, according to the analyst, is expected to play out in the next 1-2 weeks, depending on how the digital asset performs with momentum. Nevertheless, Armando states that ”Momentum indicators are curling up! As long as XRP stays above $2.80, bulls remain in control!”
Featured image from Dall.E, chart from TradingView.com
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