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XRP’s price action within the past seven days has been limited to a trading range as investors look to recover the losses they incurred at the beginning of February. This range is a consequence of the current indecisiveness on the XRP price. However, popular crypto analyst EGRAG CRYPTO has provided a detailed breakdown of XRP’s price trajectory from here. Particularly, the analyst highlighted crucial support and resistance levels that could determine XRP’s movement at each stage.
XRP’s Lower Price Targets Indicate Key Support Levels
Sharing his insights on X, EGRAG CRYPTO pointed out that recent price action suggests market manipulation was at play, liquidating leveraged traders before a rebound. His observation followed the sharp downturn in the first three days of February when XRP’s price dipped below $3 and found a temporary bottom at $2.12. Furthermore, this decline included a wick that caused a wave of liquidations among leveraged traders.
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However, the analyst maintains that as long as XRP remains above a certain blue channel on the XRP chart below, the outlook remains positive for its price trajectory. With this in mind, EGRAG CRYPTO provided a set of lower targets that serve as key support levels, emphasizing that closing below any of them could signal weakness.
Although price wicks may occur, the analyst suggests that the integrity of the bullish structure remains intact as long as the XRP price does not close below these levels. These support levels are at $2.21, $2.00, $1.80, $1.74, and $1.60. A break and close below the lowest support at $1.60 could indicate a final shift in sentiment and cause a deeper price correction.
Upper Targets Signal Potential Bullish Breakout
On the bullish side, EGRAG CRYPTO outlined upper price targets that could confirm a strong breakout if XRP successfully closes above them. The analyst identified these targets as $2.62, $2.75, $2.94, $3.22, and $3.40. Notably, XRP had already traded above these price targets during this cycle and even closed above the first four targets in the daily timeframe.
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EGRAG CRYPTO noted that the higher the price closes above these targets, the more bullish the outlook becomes, particularly over longer timeframes. A breakout and close above $3.40 would mark the first time the cryptocurrency has reached a new all-time high in over seven years. . Furthermore, the analyst price action within the $2 to $3.40 range might simply be market noise. Hence, sustained closes above the resistance levels are all the confirmation that’s needed.
At the time of writing, XRP is trading at $2.55, reflecting a 4.6% increase over the past 24 hours. This upward movement brings XRP closer to testing the first breakout target of $2.62.
Featured image from Pexels, chart from Tradingview.com
