XRP Price Prediction: Key Levels to Watch Right Now

The XRP market has had many surprises, especially after the recent move when it initially reacted to the supply zone but challenged expectations by soaring to $3.40, pushing liquidity up. Short sellers at the supply level may face challenges unless they secure their position by moving stop points to break even. Let's explore the current prospects of XRP and discover potential trading strategies. Pessimistic prospects for M15 and key observations On the 15-minute chart, XRP shows a downward trend, further supported by notable market structures visible on the 5-minute chart. Here are the highlights: Liquidity area: The supply area is still an important area to monitor as it can cause significant price declines. However, liquidity in this area continues to pose risks, with the potential to drive price fluctuations higher if exploited. Traders should exercise caution with short positions, ensuring risk management strategies such as stop-loss orders are in place. Potential demand area: A compact demand area below the current price level presents an interesting opportunity for buyers. Despite its small scale, it has the potential to act as a catalyst for price increases. This area carries high risks due to limited scope, but its strategic location may make it attractive to actively seeking traders looking for long-term trades. Possible scenarios for XRP The unpredictability of the market capitalization means that XRP could follow the outlined scenarios or completely different ones. Here are potential paths for this token: Continued price reduction: Clear reaction in the supply zone can confirm the bearish sentiment, pushing prices lower. Short sellers should always be cautious and adjust stop orders to minimize losses in case of unexpectedly high liquidity above the supply zone. Price recovery: Signs of strength in the demand zone can ignite price recovery, providing traders with a buying point. Patience and confirmation (e.g., candlestick patterns or sudden volume increase) are the keys to minimizing risks associated with this game. Trading strategy for XRP To effectively navigate the current market environment, consider the following approaches: For short selling: Monitor the supply zone for clear price drop reactions. Use tight risk management and adjust stop loss levels to break even when trading favorably. Prepare for sudden higher liquidity to avoid significant losses. For long positions: Pay attention to the demand zone and wait for buying strength confirmation before placing orders. Recognize the high risk nature of this setup due to the small area and proximity to selling pressure. Main points The market owes traders nothing and flexibility plays a crucial role in adapting to volatile conditions. Both the supply and demand zones bring their own opportunities and risks, requiring disciplined risk management. No analysis or strategy guarantees success; preparing for multiple scenarios is essential. Be patient, manage risks carefully, and let the chart guide your decision. Whether the market is trending up or down, your readiness and adaptability will determine the outcome.