There’s already a turn in the tide for XRP, and this has naturally triggered more interest in the digital asset from investors. While there is still selling pressure from bears at this time, the XRP price continues to show bullish tendencies with the possibilities of more returns from here. However, a crypto analyst has warned XRP investors to refrain from jumping into the cryptocurrency due to FOMO. Instead, they advise investors should wait for confirmation before making their moves.
What To Watch For Before Entering XRP
In a TradingView post, pseudonymous crypto analyst Neotrader_CFT outlined what must happen before getting into XRP is a good idea for investors. After the slowdown of the rally, there is now the problem of resistance against continuing its rally, and that lies at the $3 region.
As the post explains, waiting for the XRP price to break above $3 with momentum is the decisive move to take here. If the daily candle is able to successfully maintain and close above this level, then it signals to the market that the buyers are still heavily dominating the altcoin.
Given this, the crypto analyst advises investors to wait for a break and a retest of $3. This simply means that the price crosses the $3 region, and then a slight retrace brings it back down. However, if the XRP price is able to maintain above $3, then it would mean that this level is now support, making it a good time to get in. From here, the next major target lies at $3.10-$3.20.
The Bear Scenario If It Breaks Down
Now, with the $3 region being the main level to break for bulls, it means that bears will have to keep the price below this level to maintain the bearish momentum. The scenario here is simply the inverse of the bullish case that was explained above.
Firstly, the XRP price will need to stay below $3, and even in the event of a test, it will be rejected back down from here. This will show that sellers are dominating the market and exerting control over the price. Other things the crypto analyst tells investors to look at are things like long wicks and bearish engulfing. Once this happens, it would signal a decline and a good time for a short.
This bearish scenario will be validated if the price were to fall back below $2.90. As the correction deepens, the analyst explains that the XRP price could go as low as $2.75 before the decline is over. “A clear rejection will give you a safer entry instead of guessing,” the analyst said.
Featured image from Dall.E, chart from TradingView.com
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