- XRP has tapped into liquidity as predicted, reacting to a demand zone highlighted earlier this week
- The price is retracing its last 4-hour bearish impulse and could test nearby supply zones for liquidity
- The market remains unpredictable, making robust risk management crucial when trading XRP
Two days ago, we discussed how XRP’s price might reach down to liquidity pools, and as expected, the market has moved in that direction.
Interestingly, the price recently reacted to a demand zone we identified in our December 4 analysis. This is why following our daily updates can provide valuable context for market moves.
Currently, XRP is retracing its last bearish 4-hour impulse.
The price might aim to grab liquidity higher, potentially testing a nearby supply zone before resuming its downtrend.
However, it’s also possible the price could break through this supply, targeting an even higher zone.
What to Watch Next
- Liquidity Zones: Monitor the price as it approaches supply areas. These levels could act as barriers or breakout points, depending on the market’s strength.
- Retracement Patterns: If the price retraces deeper, it may indicate a buildup of liquidity for a more significant move.
- Unpredictable Dynamics: Always remember, while scenarios can be analyzed, the market can surprise us.
Final Thoughts
The scenarios outlined here are not certainties but possibilities based on current price action. Always pair these insights with robust risk management and your own research.
(Disclaimer: This content is for informational purposes only and should not be considered financial advice.)
