As sell-offs have rocked the crypto market, the XRP price has fallen below $3, marking the third time this month that it is losing hold of this important support level. If bulls are unable to reclaim this level, then it is likely that the altcoin will continue to decline from here. In this case, there could be brand-new opportunities to get into the cryptocurrency at lower prices, pending when the crypto market begins to rally once again.
Sell-Side Liquidity Shows When Next To Enter
After the price crash below $3, crypto analyst SiDec explained that XRP is now seeking to take out more sell-side liquidity. As explained, this sell-side liquidity is where there are a lot of stop-losses placed by leverage traders, as well as buy orders at the same level. These are usually lying below swing lows and present a perfect opportunity for a sweep.
Usually, in cases like these, the digital asset’s price is likely to swing down and take out this liquidity before there is any sort of recovery. In the case of the XRP price, the sell-side liquidity is currently sitting low, just above the $2.80 level. Given this, it makes sense that around $2.86 would be a good time to enter for the most gains.
Another factor that drives this level as an ideal point of entry is the fact that the retracement to the 0.786 Fibonacci level also aligns with the Sell-Side Liquidity zone. This just makes the likelihood of a decline to this level higher, especially as more buy orders pile up.
Where The XRP Price Could Be Headed
To buy at the point of maximum opportunity, the crypto analyst asks to wait for confirmation first. A number of developments could lead to the confirmation, and these include the order flow, delta shifts, or footprint imbalances. This will show when buyers have begun to enter the arena again and point to mounting bull pressure.
Once this confirmation is obtained, it shows that it is time to enter. The major entry zone, as already highlighted above, is the $2.86 area. Then the price is expected to keep rising from here. The first stop is able $3, where the crypto analyst places the first point of Take-Profit $3.0129.
In the case where the buyers do not step in and the XRP price continues to weaken, then the analyst places the invalidation level at $2.8. This would pave the way for deeper crashes, and XRP could decline further before there is another opportunity for buyers to step in.
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