- XRP surged from $0.583 to $0.593 earlier than expected, complicating traders’ long-term strategies in volatile markets.
- Cheeky Crypto points out the profit potential in XRP’s volatility, mainly through short positions near $0.569.
- Resistance at $0.567-$0.568 is a challenge, but a rebound between $0.570-$0.579 offers long position opportunities.
XRP, the popular cryptocurrency, is undergoing significant price fluctuations. In a recent YouTube video, the renowned crypto analyst Cheeky Crypto explained the latest “pump and dump” pattern in XRP. The analyst stated that while it presents challenges, it also offers opportunities for traders in the volatility.
The analyst examined XRP’s movements on both the 1-hour and 1-day charts. XRP recently surged from $0.583 to $0.593, but the movement occurred earlier than predicted, making it difficult to capitalize on long positions. The quick rise, followed by a decline, suggests a consolidation phase, particularly within the $0.574 to $0.584 range, an area with significant sell pressure.
Cheeky Crypto noted that despite the rapid price swings, there were chances to profit from short positions during the dip, particularly around $0.569. He emphasized the importance of understanding these market dynamics to make informed trading decisions amid XRP’s unpredictable behavior.
The analyst highlighted the resistance levels around $0.567 to $0.568, marked by the 50 SMA, 50 EMA, and 200 EMA, as key challenges for any immediate upward movement. While the Stochastic RSI indicates some potential for upward momentum, the Relative Strength Index (RSI) continues to trend downward, signaling ongoing market weakness.
In the short term, the analyst anticipates a possible pullback before XRP attempts to retest resistance between $0.570 and $0.579. Given the likelihood of a temporary rebound, he advises traders to watch this range closely as a potential entry point for long positions.
Ripple and SBI Partner To Boost XRP Ledger and NFT Adoption in Web3 SpaceThe analyst has predicted a decline from $0.51 to $0.52 in the long-term outlook, which will fluctuate over the subsequent weeks. However, this retracement may establish a good bullish signal and attempt to reach $0.755, which responds positively to a 44% raise. Such a trade could generate significant profits if facilitated with a proper stop-loss place; in that sense, it might be one of the best opportunities for XRP trading.
Since the market remains unpredictable in the case of XRP, traders need to be ready for losses and profits. The analyst, therefore, cautions traders, particularly those in the leveraged system, to tread carefully and examine the market closely before making any drastic move.
