- XRP’s resilience shows as bulls defend the Blue Zone support, indicating strong buy orders.
- Market makers target support levels to exhaust bulls, potentially causing a breakdown.
- A breakout or breakdown may occur if XRP moves significantly beyond its $2–$3.40 range.
XRP has shown resilience amid recent market trends. In his X post on Friday, Egrag Crypto analyzed ongoing market activity, highlighting the battle between bulls and bears. XRP entered the Blue Zone multiple times, with bulls consistently driving the price upward. This suggests strong buy-side demand in this zone.
However, these market makers make strategic attacks to check the authenticity of these support levels. They only focus on the same levels to exhaust the bulls, which can often result in weakening of the support zone over time. A similar dynamic occurs at resistance levels, where repeated attempts can weaken bearish positions, allowing bulls to take control. This process results in a tug-of-war action that traders usually monitor.
Key Levels to Watch
Egrag stated that price fluctuations between $2 and $3.40 can be considered market noise. This range allows traders to execute strategies without major disruptions. However, the analyst said any major deviation from this range may indicate a market behavior change. In other words, the price variation is normal, but aggressive movements beyond this range might indicate that a new trend is developing.
However, it is important to note that $3.40 has remained a strong resistance level, limiting XRP’s upward movement. As momentum builds on both sides, a major price movement appears imminent.
Related: XRP Maintains Support at 38.2% Fibonacci; Optimism Grows.
To determine whether there is a possibility of a breakout or breakdown, traders consider certain indicators. Downward pressure on XRP may be confirmed by a bearish crossover between the 21 EMA and the 100 MA. The moving averages, although lagging indicators, can still signal increasing selling pressure when a crossover occurs. On the other hand, successfully closing above key levels at $2.20, $2.30, $2.60, $2.83, and $3.10 would strengthen the bullish case, indicating continued upward momentum..
As traders watch various level indicators, bullish and bearish forces are fighting it out. The next few days will reveal the cryptocurrency’s next direction.
