Analyst Issues Major Technical Warning for XRP and HBAR Investors

Crypto analyst Steph Is Crypto has released a detailed video analysis warning investors in XRP and HBAR of potential short-term volatility despite an overall bullish market trend. He explained that the recent market sell-off, which saw significant liquidations, may be a trap and urged viewers to examine the technical indicators closely before making investment decisions.

Current Market Structure for XRP and HBAR

If XRP were to break back below $3, this could indicate a bearish reversal. For now, however, he expects further gains, with the next price targets at $4.65 based on the 2.618 Fibonacci extension, following an earlier move to $3.60 at the 1.618 level.

HBAR has followed a similar trajectory, reaching the 1.618 target of approximately $0.30. The next level to watch is $0.40, with potential for $0.50 if momentum continues in the coming weeks.

Impact of Macroeconomic Conditions and Liquidations

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Steph attributed the recent sell-off to the U.S. Producer Price Index rising to 3.3%, surpassing expectations and fueling inflation concerns. This has placed pressure on markets, leading to $460 million in long positions being liquidated in the past hour at the time of his recording. Despite this, he believes the broader trend remains upward.

Liquidity, Whale Activity, and Market Sentiment

The XRP liquidity heat map shows substantial liquidity above and below current prices, suggesting possible volatility in either direction.

Steph also noted bearish signals from whale activity, including the closure of a nearly $15 million XRP long position and large ETH positions closed or shorted. He highlighted that over 95% of the XRP supply is currently in profit, a condition that historically leads to increased selling pressure and heightened volatility.

HBAR search volume has surged to 90-day highs, which Steph identified as another short-term bearish signal. Additionally, the funding rate for HBAR has spiked following news of a Grayscale HBAR ETF filing, and XRP has recorded 46 consecutive days of positive funding rates—indicating strong market expectations for further price increases, but also the risk of overheated sentiment.

Broader Market Indicators and Potential Corrections

Steph pointed out that the crypto fear-and-greed index is at 75, just below the “extreme greed” level, a stage that often precedes short-term corrections. The altcoin season index is at 51, suggesting more room for upward movement before historically typical corrections occur at readings above 75.

Looking at long-term charts, Steph warned that XRP’s monthly RSI is approaching a multi-year downward sloping trendline, which has historically signaled significant corrections. He also observed a possible bearish divergence forming on the stochastic RSI, which could lead to a multi-week or multi-month correction once a final local top is reached.

Price Targets Before Potential Pullback

Steph’s short-term targets remain at $4.65 and then $5.69 for XRP, and $0.40 to $0.50 for HBAR, before the possibility of a correction. While his outlook remains bullish overall, he advised caution for traders using leverage and emphasized the importance of securing profits as markets progress toward historically significant overbought conditions.

Disclaimer*: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.*