Key Levels To Watch For XRP Price Amid Reversal Setup

XRP price was, in a corrective pattern earlier today. Market analyst Dom has termed it the ‘Liquidity void’.

This zone emerged at the end of November and is defined by a high-volatile, low trading-volume price hike. During this period, XRP appreciated without establishing enough support or resistance.

According to analysts, when the asset comes back to this zone, it might experience temporary stabilization as it was not previously a structurally developed zone.

This kind of price inefficiency may draw the interest of investors since price tend to respond any time it re-enters such zones.

The current correction is taking XRP to the lower limit of its trading range. It’s drawing attention to how the altcoin will behave around this level.

XRP Price Range and Support Zones

According to Dom , XRP is currently trading within a broader price range of approximately $1.50 to $2.00.

With the asset now leaning toward the lower boundary, traders are observing two specific levels that may influence short-term to medium-term market trends.

Source: X

The mid-range level of around $1.83 could serve as short-term resistance if the price attempts a recovery.

Analysts consider $1.4864 as an essential support point after it reached the bottom of the inefficiency zone.

A price fall below the support level might lead to increased selling pressure but a rebound at this point might reflect a temporary support.

Market analysts watch the $2.00 price point because it holds significant potential to cause structural market changes.

The price regaining and continuing above the mark will build the groundwork for positive market momentum.

If XRP price manages to stabilize and rally above this zone, broader market participation may return.

Until then, the market remains cautious, with traders assessing whether the current support levels will hold.

MACD Divergence and Momentum Indicators: Reversal Potential?

Another analyst, Javon Marks, presented a perspective focused on momentum indicators.

He identified a regular bullish divergence on the Moving Average Convergence Divergence (MACD) indicator.

This pattern forms when price action produces lower lows while the MACD indicator registers higher lows.

This divergence is often read as a potential signal of weakening downward momentum and the possibility of a trend reversal.

Source: X

Marks also noted there is a downward trendline in MACD nearing a breakout. Higher price movement above this trendline would help build the argument for more buying pressure. This move would give more evidence to this reversal signal.

XRP Price Prediction Contingent on Momentum Confirmation

Javon Marks suggests that if this current setup leads to a breakout, XRP could re-enter an upward trajectory, with a potential price target above $3.30.

This price prediction is based on historical performance and the strength of the MACD divergence combined with broader market conditions.

However, this projection is valid only if we see the breakout from the MACD trendline coupled with support from the lower range.

The main outlook for the XRP price largely depended on its action around the identified levels of $1.4864, $1.83, and $2.00 in future sessions.

Now that the token had surpassed these levels and was trading at $2.06 at the time of writing, it strengthens the possibility of a further hike in prices.

Meanwhile, in other XRP news, the Ripple network reached a major milestone, with the number of addresses holding XRP surpassing 6.26 million.

This record figure, shared by Ali Martinez, highlighted growing network participation despite broader market volatility.

The increase in addresses suggests that both new and existing investors are actively accumulating XRP, viewing the current lower price levels as a strategic entry point.

The consistent rise in holding addresses points to a broader trend of investor confidence in Ripple’s long-term potential.

More so, the surge in addresses comes shortly after the successful launch of a 2x leveraged XRP ETF (XXRP) in the United States.

The fund recorded $5 million in trading volume on its debut, placing it in the top 5% of all newly launched ETFs, according to analyst Eric Balchunas.