In a YouTube video, crypto analyst Cheeky Crypto analyzed Ripple’s XRP. The video covered both short-term and medium-term price outlooks, focusing on recent volatility.
Moreover, it also touched on wave patterns, resistance levels, and moving averages to help traders understand potential market movements.
What you'll learn 👉
XRP’s Volatility and Market Liquidations
XRP experienced notable volatility recently, with shifts in both directions leading to liquidations of long and short positions. Cheeky Crypto noted that these liquidations create opportunities for informed traders to capitalize on price movements.
Furthermore, the analyst explained that this type of volatility signals a tense market. This is where both bullish and bearish scenarios remain possible, depending on key technical factors.
Despite recent movements, XRP is tracking what the analyst identifies as a fifth wave movement in Elliott Wave theory, aiming for a modest gain between 3% and 5%. The target range is set between $0.615 and $0.624. However, there is a possibility of further downside before this wave completes.
Key Technical Analysis and Price Levels
Cheeky Crypto discussed a diagonal wave pattern, differing from the traditional impulsive waves. According to the analysis, XRP may still be within its fourth wave, signaling additional downward pressure before the anticipated upward move.
The expert also highlighted the resistance zone between $0.5919 and $0.594, with historical data suggesting these levels could lead to a correction. The video emphasized the importance of watching the 200 EMA, which acts as a critical support level.
Meanwhile, a break below the 50 EMA could signal further downside. Momentum indicators, such as the RSI, indicate overbought conditions, which suggests that short-term downward pressure may continue.
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Show more +Potential Scenarios and Predictions
The near-term outlook leans bearish, with Cheeky Crypto identifying $0.57 as a key support level. Should this level fail, XRP might experience an even further drop to $0.46.
The video also covered a medium-term positive scenario, whereby XRP price would rise to $0.75 to $0.85. This could be possible if the token breaks through key resistance and momentum indicators reset.
Despite the immediate bearish outlook, the video reassured traders that XRP’s medium-term potential remains intact, with key technical indicators suggesting room for future growth.
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Where is XRP Headed?
While the short-term analysis predicts further downside, Cheeky Crypto differentiated between short-term movements and medium-term prospects. He explained that the current corrective pattern may offer a temporary dip before XRP targets higher levels.
According to the analysis, if XRP can hold above its support zones and break through key resistance, it could trigger a move toward the $0.75 to $0.85 range.
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