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XRP bulls to soon take a backseat amid signs of ‘flush down and selling climax’

XRP has been stagnant, with no major movements in the past 24 hours. An analyst from the YouTube channel ‘Pip Snipers’ posted a new video providing a detailed technical analysis of XRP’s price trend, explaining why bulls might have to wait a bit longer for gains.

The analyst said that after the grind to the upside, you usually see a failed break, a check back, and then continuation. Despite the selling climax and flush, XRP continues to make higher lows. This pattern is typical in highly overleveraged markets, which often produce head fakes and manipulation before moving higher or lower. At the time of writing, XRP is trading at $0.50 and is trading in the green zone. 

Since the beginning of 2023, XRP has exhibited a five-wave move upward, forming an ascending broadening wedge, with the fifth wave topping out at the 1.236 level before entering a WXY correction for Wave 2. Wave 2 retraced perfectly to the 70.2% Fibonacci level, where whale buy orders were filled.

Typically, the 70.2% and 78.6% Fibonacci levels are common retracement targets before a reversal, particularly for XRP. After reaching the 70.2% level, XRP consolidated, experienced another flush, and then began grinding upward.

This pattern indicates trend line liquidity, with buy stops accumulating under the trend line from market participants expecting a continued rise. However, the market usually needs to flush these buy stops before continuing upward.

In this structure, similar to previous instances, the trend line liquidity is taken out, reaching the 78.6% level before grinding higher. Zooming in, the major liquidation event with Bitcoin led to a selling climax, followed by an automatic rally, a secondary test of the lows down to the 78.6% level, and then a continued grind upward.

This market behavior involves a flush down to a selling climax, an automatic rally, a secondary test of the lows, and extreme retracement levels before resuming the upward trend. He believes XRP will perform well in 2024 and that the current structure marks the bottom. Following the selling climax, automatic rally, and secondary test, he anticipates a grind to the upside, a check back, and then a continuation higher.

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