- XRP is positioned at a critical level, with a mini bounce expected if it holds key support.
- Closing above $2.83 could signal strength and push XRP toward a target of $4.20.
- Breaking key support could signal a bearish trend and present a buying opportunity.
The price of XRP appears to be trapped in a critical zone where levels offer clues to its direction. As Egrag Crypto pointed out in his Saturday X post, XRP is currently positioned on the lower edge of the Blue Channel. This could lead to a mini-bounce; therefore, the next short-term movement is important in determining what will happen.
Bullish Scenario for XRP
XRP has been fluctuating within this volatility range, with its direction hinging on key levels. In the subsequent days, Egrag presents three possible scenarios. In the most bullish bearish market scenario, the price of XRP must break the $2.83 to the upside.
If the price is expected to rise, reaching this level is critical. Once the price hits $4.20, the future target could be even higher. This would strengthen the bulls’ case and set the stage for further upward movement.
On the other hand, a more conservative approach to technical analysis may point toward the fact that XRP might revisit the Previous Daily Low (PDL). This level can be related to the Fib 0.888 level, which has been rather supportive in the past.
If the XRP price bar drops below this support level, the bulls will remain in control. Key levels to watch include the previous daily high at $2.40, the last weekly high at $2.97, and the prior month’s high at $3.07. However, if XRP maintains its position above these levels, there could be a steady increase ahead. As of now, XRP is trading at $2.42, reflecting a 4.58% gain over the past 24 hours.
If the price of XRP stops below this support, then the bears will continue to be in charge. On the other hand, if the support holds, the levels to look forward to are the previous daily high level at $2.40, the last weekly high level at $2.97, and the prior month’s high level at $3.07. However, if XRP holds above these levels, there might be a gradual increase in the future. As of press time, XRP is trading at $2.42, showing a 4.58% increase over the past day.
Related: SEC Proposes XRP As A Strategic Financial Asset For The U.S.
According to Egrag, if the Fib 0.888 level and PDL are resistances, XRP may have a bearish pressure towards the Fib 0.786 mark. Such occurrences could indicate the beginning of a bearish phase. Egrag Crypto believes this could also be a fake breakout since this pattern often leads to a bear trap.
The decline could be a signal for buying or establishing a long position since the market may be poised for a reversal at this level. But if these levels are not held, XRP might transcend to a hidden bear market. However, it has been seen that the markets are dynamic, and traders need to be careful. Market participants should wait to see which of these possibilities will play out in the days to come.
