The However, an analyst on XCryptoinsightuk, disagrees. The analyst explains that XRP is not bearish at the moment, even after the 50% flash crash, and the price can still move higher when liquidity returns.
Low liquidity and weekly chart still look good for XRP price
Cryptoinsightuk says XRP has “no downside liquidity.” The analyst explains that the sellers are not strong, which means there is very little liquidity below the current price level. That doesn’t mean the XRP price remains still, even though it may move up and down for the time being. At some point, exchanges and market makers may push the price higher into deeper liquidity, where they can make money.
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The analyst says the flash crash won’t hurt the weekly chart. The weekly picture still shows a normal trend even after the sharp decline. He notes that online discussions focus on the monthly chart and use it to claim that XRP is weak, but the monthly chart is only one time frame and not enough to call the price truly bearish. The slight decline only shows weakness at lower time frames, not in the broader market structure, and Cryptoinsightuk believes the larger structure is still pointing upwards, which is a key reason he doesn’t see a bearish trend developing even after the 50% flash crash.
The analyst’s comment about market makers also gives hope to traders who worry about them the XRP price will continue to fall. When market makers see better opportunities at higher price levels, the price often moves upward to where they want to make a profit. It gives XRP a path to recovery later, rather than remaining low. He keeps pointing to the weekly chart because it shows that XRP is still holding strong its bigger bullish stance even after the fear caused by the flash crash.
Higher futures look strong, and RSI fractal points to a rise
Cryptoinsightuk further adds that higher time frames are always more reliable for reading price trends and recommends looking at the XRP price chart for the past three months. According to him, the three-month chart looks good supports a strong long-term trend.
He also watches the daily RSI, and it recently reached oversold territory. When this happened the last time, the XRP price later experienced a sharp increase. The analyst shared a fractal a few weeks ago showing what a new ‘measured move’ like this could look like the same pattern repeats.
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The fractal suggests that the XRP price could rise again from here. The oversold RSI signal suggests that buyers could return push the price higher in the future.
Featured image created with Dall.E, chart from Tradingview.com