A prominent market analyst has identified the price levels XRP needs to maintain to stay afloat.
The analysis comes amid the recent range-bound XRP movements, as broader market uncertainty prevails on the back of President Donald Trump’s planned tariff hikes and latest data suggesting an unexpected spike in U.S. inflation to 3% for the first time since June 2024.
Notably, the current bearish phase began on Jan. 31, pushing XRP below the $3 mark as February came. XRP also witnessed a sharp wick to a new yearly low of $1.7 on Feb. 3 before recovering above $2 and holding onto this psychological level despite bearish pressure.
A Glimpse into XRP’s Current Market Dynamics
In his latest analysis, market watcher EGRAG Crypto suggests that the Feb. 3 wick to $1.7 was a result of market manipulation aimed at taking out leverage positions. Interestingly, order book expert Dom had previously confirmed that the dynamics surrounding the XRP price crash were not natural, indicating possible external influences at play.
Despite these tumultuous events, EGRAG asserts that XRP has maintained its upward trajectory. He brings attention to the ascending blue channel on the 12-hour chart that the altcoin broke above during the notable rally in November 2024.
Since breaching this critical channel, XRP has continued to operate above it, leveraging this structure as support during both upward movements and periodic pullbacks. The most recent drawdown brought XRP back toward this blue channel, yet the asset respected this support and regained its footing above the channel.
EGRAG emphasizes that XRP remains on an upward path as long as it stays above the ascending channel. He states, “As long as we stay above this channel, I can’t be anything except super bullish,” reinforcing the importance of this support level.
Essential Price Levels for XRP
In his analysis, EGRAG recognizes that XRP is likely to experience additional volatility in the form of price wicks. Nonetheless, he has identified five crucial price points that XRP must hold to maintain its bullish momentum. According to EGRAG, these lower targets are set at $2.21, $2, $1.8, $1.74, and $1.6.
These targets lie below the ascending blue channel, and EGRAG asserts that as long as XRP remains above these levels, its overarching momentum will retain a bullish characteristic. However, if any pullback pushes the altcoin below these specified levels, the market could quickly shift toward a bearish sentiment.
On the upside, EGRAG also identifies five targets that, if surpassed, would signal an imminent upward surge for XRP. The upper targets he highlights include $2.62, $2.75, $2.94, $3.22, and the recent peak of $3.4 achieved on January 16. Significantly, these levels are positioned above the ascending channel.
EGRAG sums up the situation neatly: “Anything between $2 and $3.40 is just noise in the market,” suggesting that as XRP continues to hover within this range, it will remain in a phase of consolidation, without clear momentum in either direction.
At present, XRP is trading at $2.45, reflecting a minor decline of 0.91% this morning following a gain of 2.5% yesterday. The asset’s Commodity Channel Index (CCI) is currently at -52.94, indicating that there is still potential for growth, even if XRP is not in a particularly undervalued state. A move towards the 20-day moving average at $2.69 could further empower bullish sentiment.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
