XRP Bullish Breakout Looms: Two Key Price Scenarios to Consider in July

• XRP metrics indicated that bulls could see some relief over the next week or two.
• Traders should plan and prepare for two scenarios that could occur in July.

Ripple (XRP) was trading at the bottom of a range that dated back to mid-April. A recent report from AMBCrypto highlighted that the price had formed an uptrend during its recent days of consolidation.

If the price manages to break out of this wedge pattern, a 30-40% rise will become more likely. But as things stand, momentum and volume indicators highlight bearish pressure.

On-Chain XRP Metrics Signal Buying Opportunity

Daily active addresses have been slowly trending downward since late March. Some days there were large spikes in activity, but overall the metric tended to decline. This was a negative sign indicating reduced usage and demand.

The supply percentage of profit also declined with prices in June, unsurprisingly. The price action saw the 30-day MVRV fall into negative territory.

However, over the past month, the average age of coins has started to increase.

Together, the increase in average coin age and the decline in MVRV showed accumulation and an undervalued asset and was a buy signal. Should traders accept it?

Liquidation data and the two scenarios that can play out here

The liquidation heatmap showed a high concentration of liquidation levels just below the $0.55 level. This magnetic zone is likely to attract higher prices towards short liquidations.

However, the $0.436 presented another attractive pocket of liquidity, closer to market prices.

The delta of cumulative liquidation levels was significantly negative. This meant that long-term liquidation levels were significantly outnumbered by short-term liquidation levels.

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Realistic or not, here is the market capitalization of XRP in terms of BTC

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In turn, this implied that a move higher could start to squeeze out these short sellers. The $0.485 level is a key near-term target, nearly 2.5% above prices. In one scenario, XRP reverses its recent losses and climbs towards $0.55.

The other scenario could see XRP rise to $0.485-0.49, face a rejection to fall to $0.436, and then initiate a recovery that would propel prices towards the top of the $0.56 range. Traders must be prepared and ready to adapt according to the situation.