Recently, I was analyzing the XRP chart and noticed an interesting thing — there are zones on the chart where the price simply flies past without a proper pullback. That’s what I call imbalance, and honestly, it’s one of the most useful tools in technical analysis.

The idea is simple: when the price moves too quickly in one direction, the market doesn’t have time to absorb that movement. Unfilled limit orders remain, market makers look for liquidity, and eventually, the price often returns to that zone to balance everything out. This doesn’t happen randomly — it’s a pattern.

How to find such zones? I look at 1H, 4H, or 1D timeframes. The signs are straightforward: two or three candles in a row in the same direction, large bodies, minimal wicks, and then a strong impulse follows. That’s imbalance. When I see this pattern, I understand that the price will return there later.

On XRP, I identified three key zones. The first is the 1.40–1.65 level, where there was a sharp upward candle without a pullback. The second zone is 1.12–1.30 — also a quick breakout, but with good volume, representing a demand level. The third, the lowest, is 0.93–0.98, formed at the start of the trend and not fully retested yet.

When I find an imbalance upward, I wait for a retest from below and look at lower timeframes to see if there’s confirmation. If it’s a downward imbalance — I wait for a return to the zone and consider shorting. But the main point isn’t a signal to enter, it’s just an area of interest. It works best combined with support-resistance levels and volume.

In practice, it looks like this: I wait for the price to return to one of these zones, then on small timeframes I look for confirmation — maybe a pattern, volume, or a false breakout. Then I enter in the direction of the impulse with a small stop just outside the zone.

Currently, these three levels are relevant for XRP: 1.65, then 1.30, and 0.98. If the market revisits these levels, they’re good entry points, especially if there’s confirmation on lower timeframes. Imbalance is a powerful guide on liquid coins, showing where the price might pause or reverse.

Of course, this isn’t financial advice, just my analysis. Always do your own research and consider the risks.