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XRP holds critical support at $2.50 – Time to buy?
XRP’s recent price action has caught the attention of many investors and traders alike, with its sudden 3% price drop in the past day being largely attributed to the Bybit hack that drained $1.4 billion in cryptos. The sudden pullback in XRP’s value may have been a blessing in disguise for investors who were previously over-leveraged at crucial levels.
Not only did this event create a buying opportunity, but it also led to significant outflows of $29.5 million worth of XRP from exchanges. This could potentially create a favorable environment for the altcoin to continue its upward momentum.
According to recent data, traders have been over-leveraged at key levels such as $2.52 and $2.63, with these levels likely to act as strong support and resistance. In other words, these price points have already attracted significant buying pressure from both bulls and bears alike, which could lead to a period of consolidation before the next major move.
Long-term holders and investors have also been accumulating XRP tokens in recent days, further solidifying its bullish outlook. The fact that exchanges have seen such outflows in just 48 hours suggests that there is still considerable buying pressure building up on the sidelines.
At this point, it’s essential to note that while XRP’s short-term momentum may be questionable due to its trading below the 200 Exponential Moving Average (EMA) on the four-hour timeframe and a weak ADX reading of 15, the overall trend remains steadfastly bearish.
However, considering the recent surge in buying pressure, it’s difficult not to see the potential for a short-term bounce. This could be driven by the fact that traders who were previously over-leveraged at crucial levels are now scrambling to recover their losses.
As we navigate this market volatility, investors should remain cautious and keep an eye on key levels like $2.52 and $2.63, as these may act as potential triggers for further price action.
Source: ambcrypto.com
