Technical Analysis XRP: Explosive Potential and Key Price Levels

In the past few days, XRP - the original token of Ripple Labs - has experienced constant price fluctuations. However, technical analysts point out that, after the unstable fluctuations, XRP is facing a strong price increase opportunity due to the formation of a bullish price pattern on the four-hour time frame.

1. Cup-and-Handle Price Increase Model Analysts believe that XRP has formed a cup-and-handle pattern on the four-hour timeframe. This is a common technical pattern, indicating an upward trend after a correction phase: Neckline (: The price has reached the neckline of the pattern, marking an important level in determining the price increase potential. Breakout potential: If XRP breaks the pattern and closes a four-hour candle above the $2.55 level, the signal indicates that the uptrend may explode, with the potential to reach $2.83 - equivalent to an increase of about 12% in the coming days.

2. The Role of the Exponential Moving Average )EMA( One notable point is that the neck line of the pattern coincides with the 200 EMA on the same time frame. This is not only a support level but also considered as a significant resistance level: Resistance of EMA 200: This repetition requires superior strength to maintain the upward trend. This requires traders to closely monitor signals at this level.

3. Current Price Momentum and Key Figures Current trading price: XRP is trading around $2.52, recording a slight 1.10% increase in the past 24 hours.Trading volume: During the same period, trading volume decreased by 45%, indicating reduced participation of traders and investors compared to previous days.Selling pressure from exchanges: According to data from Coinglass, recently long-term investors have sold approximately $13 million worth of XRP on the exchange. This strong outflow creates selling pressure, which may interrupt the price uptrend.

4. Liquidation Levels and Trading Positions

At the current time, the market shows a clear differentiation between trading positions: Dragon Position: Traders betting on price increase are currently in a dominant position, with a leveraged position at around $2.40 worth about $57 million. Bear Position: On the contrary, short positions at $2.55 only reach about $8.50 million, indicating a somewhat weak selling pressure. These numbers show the buying power of the bulls is concentrating to push the price above the key resistance level, while laying the groundwork for a strong price increase if market conditions are favorable. 5. Prospect and Conclusion From the technical analysis, the short-term prospects of XRP can be summarized as follows: Price increase potential: If XRP breaks the resistance level at $2.55 and the four-hour candle closes above this level, the price increase momentum could reach $2.83 - equivalent to a 12% increase. Challenge: However, the strong outflow onto the exchange and the resistance level from the EMA 200 line are factors that need to be carefully monitored, as they may create selling pressure and disrupt the upward trend. Advice for investors: Traders should closely monitor key price levels, especially the $2.55 area and EMA 200, to make timely trading decisions based on the actual market situation. So, despite the positive signs from the cup-and-handle pattern and the trading position leaning towards buying, investors still need to be cautious in the context of current trading flows and selling pressure. Confirming the upward trend through key resistance levels will be an important signal for the future direction of XRP.