XRP has maintained bullish momentum, surpassing a key demand zone and approaching a crucial supply resistance.
The cryptocurrency, currently trading around $2.60, has seen increased buying interest, but traders are closely monitoring whether the rally has enough strength to break past upcoming barriers.
The price action suggests that XRP is moving within a structured range, with liquidity pockets still influencing short-term movements.
Market participants are weighing the likelihood of a pullback before another breakout, as the token approaches historically significant levels.
While recent gains have fuelled optimism, XRP remains in a volatile position, with liquidity traps and potential resistance zones shaping its trajectory.
Supply zones could trigger reversal, but a structure shift is needed
XRP’s recent rally has been driven by strong accumulation at lower price levels, with bulls successfully defending key support areas.
However, technical indicators suggest that a major supply zone looms ahead, which could act as a short-term reversal point.
Traders are assessing whether the rally has enough momentum to break past this zone or if profit-taking will slow down further gains.
The market structure indicates that a pullback is still possible, as liquidity remains below current levels. Historically, similar price movements have been followed by corrections before a sustained push higher.
A confirmed shift in structure would be required to validate continued upward movement, with traders keeping an eye on volume spikes and broader market sentiment.
Liquidity imbalance remains a key risk factor
Despite XRP’s strong performance, the presence of liquidity gaps poses a risk for both short- and long-term traders.
A sudden drop to fill these gaps remains a possibility, as large orders can trigger volatility.
Market participants are aware that institutional investors and whales often use these liquidity voids to execute large trades, leading to price swings that can catch retail traders off guard.
Historical patterns suggest that XRP has previously experienced sharp pullbacks before resuming its bullish trajectory.
The current rally could face similar conditions if sell-side pressure increases at resistance levels.
Traders are advised to manage risk carefully and avoid overleveraging in anticipation of a prolonged rally.
Market uncertainty and broader sentiment to dictate the next move
XRP’s price trajectory remains influenced by overall market sentiment, with external factors such as macroeconomic trends, Bitcoin’s price movements, and regulatory developments playing a crucial role.
The cryptocurrency market remains highly reactive to news events, making it essential for traders to stay informed about potential catalysts that could shift momentum.
While XRP’s bullish outlook remains intact for now, uncertainties persist. Traders are watching for confirmation signals before making directional bets, ensuring that they are prepared for potential shifts in price action.
With liquidity zones in play and market sentiment still mixed, XRP’s next major move could be driven by a combination of technical and fundamental factors.
The post XRP rally gains momentum: key supply and demand zones to watch appeared first on Invezz
