XRP price needs to recover $2.30 to absorb the buying wall – analyst

Since retesting psychological support at $2 on December 20, XRP (XRP) has rallied between $2.40 and $2.13 over the past week, wrapping up for a breakout in either direction.

While the higher-time frame (HTF) structure remains bearish, one analyst explained why the altcoin should close above $2.30 in the short-term.

XRP has a “buy wall” up to $2.23, the analyst says

As XRP oscillates between narrow price ranges, CW, an anonymous crypto data analyst, has a short-term buy wall currently in favor of the altcoin.

This buying wall was between $2.20 and $2.23, and failure of the altcoin to hold above this range could result in further losses. The analyst said.

“If the price is supported, $XRP will rise. If the support fails, it will likely fall to the bottom line.

Meanwhile, crypto trader Dom explained that the altcoin is showing better strength than other crypto assets as XRP spot buyers bid again on Kraken and Bitfinex. Last week, spot market buyers were active on Coinbase and Bitstamp, which allowed XRP to hold its position above $2.20.

However, the trader believes that XRP is still “not out of the woods”.

We want to accept about $2.30s to be in safe territory.

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XRP open interest has dropped 54% in 3 weeks

While XRP has captured the attention of the spot market, the futures market has presented a different picture. According to data from CoinGlass, open interest fell 54% from $4.23 billion on December 3 to $1.95 on December 26.

Such a significant fall during the holiday season indicates that liquidity in the XRP futures market is decreasing, which can be a double-edged sword. As a critical asset of crypto, prices can be more volatile than expected.

From a technical point of view, creating a symmetrical triangle reinforces the above argument. As shown in the 1-day chart, XRP price can break or break after volatility starts, and liquidity levels (reversal and bearish) are presented on both sides. A congruent triangle indicates equal probability between a bullish or depressed score.

Therefore, in line with the previous analysis, a quick recovery above $2.30 could trigger a swing to a higher pattern at $2.95. However, failure to hold the support could lead to a swing low of $1.85, which was previously seen on December 1st.

Related: Price Analysis 12/25: BTC, ETH, XRP, SOL, BNB, DOGE, ADA, AVAX, LINK, TON

This article is not intended for general information purposes and should not be construed as legal or investment advice. The views, ideas and opinions expressed herein are solely those of the author and do not necessarily represent the views and opinions of Cointelegraph.