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

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

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

If the price manages to break out of this wedge pattern, a 30-40% rise would 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 increases in activity, but overall the trend was downward. This was a negative sign that indicated reduced usage and demand.

The percentage of supply in profit also declined along 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 were 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 level presented another attractive pocket of liquidity closer to market prices.

The delta of the 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 drop from $0.485 to $0.49, get rejected at $0.436, and then initiate a recovery that would push prices up to the range high of $0.56. Traders should be prepared and ready to adapt depending on the situation.