$XRP Saturday UPDATE
2025-02-02
Category: None

CRYPTOCAP:XRP  with a billion tokens getting unlocked today—no surprise that the price has declined 5% so far after yet another rejection from the trendline resistance.


My short at $3.12 has been doing fine, and further downside would be expected as momentum is visibly waning, reflected by RSI (1D) falling back to Neutral (54) after breaking below its ascending trendline.


My first Take Profit ($2.91) was nearly reached during last night's dip as low as $2.94—it won’t be that easy, though, as the Army buys every dip with conviction. They don’t care about any $3 billion unlocks (not all of these will be dumped, usually 20%-50%) due to their wet-dream targets set between  MIL:1K  and $1M (depending on their rank in the Army).


Now, on a more serious note, shorter timeframes Market Structure has turned bearish. RSI (4hr, currently 38) needs to get back above 60 and preferably above the trendline (blue line on RSI) for me to start thinking about longs again.


Also, looking at the 2-week Liquidation Heatmap (this consolidation has been going on for roughly that long), it’s not hard to spot a cluster of liquidity around $2.5.


That’s where my last Take Profit orders would get filled, and the Market Maker could make that happen. I also intend to flip bullish right there, both with spot top-ups and potentially long leverage positions. RSI would be very oversold if XRP gets that low (likely with a wick that gets bought up quickly, by the Army, of course).


One more interesting zone for a reversal is marked with a blue arrow on the 4hr chart (confluence of ascending 1-month-old trendline, 200 MA, and Fib 0.5). This could be too early to enter, though, so best to monitor 15m-1hr timeframes for reversal signals (RSI divergences, reversal chart/candlestick patterns, etc.).


Situation in a nutshell:


Too late to short, and too early to long  CRYPTOCAP:XRP  now. Positioning is key, as volatility is expected, especially Sunday to Monday night. 💙👽

PS. I publish more regularly on Coin Market Cap or Binance Square, including Heatmaps and other timeframes mentioned in my analyses:

 coinmarketcap.com