- XRP’s price must close above $3.10 for bullish momentum to continue into February.
- Volume analysis suggests a need for higher volume to confirm trend strength.
- Ripple’s legal developments spark hope, with the SEC lawsuit potentially nearing resolution.
As XRP approaches the end of its monthly candle, a critical decision lies ahead for both bulls and bears. Analyst Egrag Crypto points out a potential bearish signal forming on the chart: a Shooting Star pattern. This candlestick formation typically suggests a reversal in a bullish trend.
With only two days left in the monthly candle cycle, the price action and volume will play crucial roles in determining the market’s direction. XRP’s price currently stands at $3.11, and if the candle closes above $3.10, the prospects for February could be notably bullish.
Key Price Action: Will XRP Hold Above $3?
XRP’s current position is crucial for its near-term outlook. Egrag Crypto highlights that if XRP can close above $3.10 by the end of the month, February could mark the start of a strong bullish momentum. The bulls have been resilient, buying up dips below the $3 level, reminiscent of their actions around $2 in previous months.
However, the Shooting Star candle suggests caution. This formation could signal a price pullback unless the monthly candle closes above the $2.93 mark, which would negate the bearish signal.
Moreover, the volume structure, particularly compared to past candles like the SEC lawsuit candle and the April 2021 candle, doesn’t yet show signs of topping. The current volume remains low, and a larger “GIGA VOLUME” candle would be needed to confirm a cycle top. Hence, while the market remains cautious, it hasn’t yet displayed the necessary indicators of an impending price reversal.
Volume Analysis: A Vital Indicator for the Trend’s Strength
The importance of volume analysis cannot be overstated. According to Egrag Crypto, the volume should be at least at a medium range to confirm the current trend’s strength. If the volume surpasses the moving average, it could support a bullish continuation.
However, if it falls below the average, bearish sentiment may take hold. If the trend reversal occurs, a significant drop below $1.83 would signal the need for a deeper correction.
XRP’s current RSI sits at 61.97, signaling a neutral to slightly bullish outlook, with resistance around 64.49. A breakout above this level could trigger further bullish momentum. The MACD remains in a positive territory, with the blue line above the orange signal line, but recent pullbacks suggest that the trend may be losing strength.
Ripple’s Legal Landscape: Shifting Signals and Growing Hope
Beyond the charts, Ripple’s legal battle with the SEC continues to add an unpredictable element to the XRP market. Recently, the SEC removed all references to Ripple from its litigation release section, prompting speculation that the lawsuit may be nearing its resolution.
While this is not definitive proof, it has sparked optimism within the XRP community. Furthermore, SEC Acting Chair Mark Uyeda’s stance on crypto regulation could bring more clarity and fairness to the industry, fueling further anticipation of positive developments for Ripple.
Additionally, Ripple CEO Brad Garlinghouse’s recent comments on promoting inclusivity in the crypto industry align with growing support for Ripple’s future. With these factors in play, XRP investors and enthusiasts are watching closely as the final days of January unfold, hoping for a favorable close and a promising February ahead.