Key XRP Resistance at $2.60

Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.

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XRP

Market context & macro factors

XRP continues to trade within its range, with resistance at $2.60. The macro-environment remains risk-averse due to stagflation fears and overall headwinds for risk assets.

While a short-term push higher is possible, it is unlikely to be a sustained move, and we continue to view any upside as an opportunity to position a move lower rather than expecting a breakout.

Technical analysis & trade strategy:

• XRP remains range-bound between $2.00 - $2.60, with clear structural levels.
• $2.60 is key local resistance, having rejected the price multiple times.
• $2.26 is local support.
• $2.00 is primary support, holding firm despite repeated tests.
• RSI at 52 suggests neutral momentum, allowing for a potential move higher before exhaustion.
• The funding Rate is flat, signalling neutral positioning.
• Open Interest hasn't had any significant increases or decreases, showing that risk appetite remains the same.
• If $2.26 breaks down, we would move into the $2.00 range.
• There's been a buildup of long liquidations at $2.20, showing a stack of overleveraged longs that the market is likely to take out. This lines up with our downside target of $2.20 - $2.26. If these positions get wiped out, this could speed up the move lower.

Trade strategy:

• First short entry at $2.80, stop loss at $3.10
• The second short entry is at $3.00, and the loss is stopped at $ 3.10. Targeting $2.00, with $1.20 - $1.00 as the extended downside move.
• Alternative Play: If $2.60 fails to hold as resistance, wait for exhaustion at $2.80 - $3.00 before entering shorts.
• If $2.00 breaks down, shift focus to shorting a retest of $2.00 as resistance.

• Next Support: $2.260
• Next Resistance: $2.600
• Direction: Bullish
• Upside Target: $2.800
• Downside Target: $1.200

Cryptonary's take:

XRP's structure is still holding, and price action is playing out as expected. There's some short-term upside potential, but the focus stays on shorting into resistance, not chasing a breakout.

The $2.80 - $3.00 zone is the best short setup-if price gets there, it'll line up with liquidity grabs and exhaustion signals. If $2.00 breaks down, the play shifts to shorting a retest of $2.00, with $1.20 - $1.00 as the next major downside target.

Patience is key; there's no need to force an entry at $2.60 when the price could be pushed higher and offer a cleaner setup.