The recent price action of XRP has taken a step back over the past week, with momentum slowing amid broader market consolidation. Starting the previous week around $2.75, XRP faced a pullback due to sellers dominating the trading landscape. This shift has raised critical questions about the future trajectory of XRP and whether it can regain its bullish momentum.
Crypto analyst Egrag Crypto presents an optimistic scenario where XRP could enter a bullish trajectory, setting short-term targets between $4 and $6, with long-term projections soaring as high as $60. Such predictions are anchored in technical analysis and market sentiment that continue to evolve.
Critical Resistance Around $3 Holding Back XRP’s Rally
As of Egrag Crypto’s latest analysis, XRP was trading at $2.67 as it continued to face heavy resistance within the $2.75 to $3.00 range. This critical zone is not just a number; it historically represents a psychological threshold mirroring XRP’s previous all-time highs around $3.40. A significant observation is that a monthly close above $3.00 could translate into strong bullish momentum, whereas a rejection at this level might trigger a pullback toward lower support levels.
If XRP manages to break through the $3.00 resistance, the next significant hurdles are expected at Fibonacci extension levels of $4.30 and $6.40. A positive monthly close above $3 could pave the way for XRP to challenge its all-time high without facing significant resistance until reaching these Fibonacci levels.
Furthermore, Egrag Crypto indicates that XRP is forming a Parabolic ARC pattern, which is characterized by three distinct phases, each with specific price targets of $33, $50, and $60. Understanding these patterns is crucial for investors as they signify potential future movements based on current trends.
The structured roadmap for a breakout includes surpassing the Fib 1.618 extension level at $6.40. Successfully doing so could initiate a prolonged price rally targeting levels of $8, $13, $27, and potentially even $67 based on subsequent Fibonacci extension levels.
Rejection At $3 Could Derail XRP’s Price Breakout
Despite this bullish setup, risks of a rejection at the $3 level persist. A failure to reclaim this price could lead XRP into a prolonged sideways movement or a retracement toward the $1.90 to $2.00 range. Should market sentiment weaken further, and if XRP breaks below $1.90, it could indicate a deeper correction risk, with $1.00 marking the next potential downside threshold. This severe scenario, however, seems unlikely without an unforeseen market event, often referred to as a ‘Black Swan.’
Nevertheless, the current market trajectory suggests an overall bullish structure may remain intact, provided XRP sustains above key levels and volume supports ongoing momentum in the coming weeks. As it stands, XRP is trading at $2.57, underscoring the importance of market vigilance in these volatile times.
Featured image from Haberler, chart from TradingView
