Market analyst EGRAG maintains optimism about an XRP rally to $5, highlighting essential resistance levels to monitor as the token charts its course through the challenging terrain.
In the latest analysis by EGRAG on this matter, a detailed chart was presented, outlining XRP’s existing market scenario. EGRAG emphasized a pair of parallel ascending channels, one in blue and another in red, which have played a significant role in dictating XRP’s price movements since its inception.
The Ascending Blue and Red Channels
The blue channel, positioned above the red channel, encompasses notable resistance points for XRP in the event of a potential breakout.
Conversely, the red channel, situated beneath the blue channel, holds critical support points. These support levels play a crucial role in mitigating significant drops during periods of downturns.
Interestingly, XRP doesn’t linger in either of the channels for extended periods. The last prolonged stint within one of the channels was when XRP spent 581 days in the red channel from 2015 to 2017. Following this period, XRP initiated a substantial rally, reaching an all-time high at $3.31.
During the 2017/2018 rally, XRP surged above both the red and blue channels. Despite subsequent retracements, the asset continued to trade above both channels. However, in the downturn of April 2022, XRP slipped into the blue channel and has remained there since.
EGRAG has confirmed that XRP has spent 602 days in the blue channel. According to his analysis, if the dynamics of the red channel align with those of the blue channel, XRP could experience a rapid drop to $0.28 before rebounding to $0.41, potentially setting the stage for a rally.
It’s noteworthy that XRP experienced a significant downturn during its tenure in the red channel, plummeting to a low of $0.003 in January 2017. According to EGRAG, a comparable drop, constituting a 50% decrease in value, is deemed essential this time for a potential upcoming surge.
Key Resistance Levels for XRP
The analyst also underscored significant resistance levels extending from the middle to the top of the blue channel, emphasizing the importance for traders to closely monitor these levels. Currently positioned at $0.75, $0.93, and $1.3, these resistance points present challenges for XRP, with an additional obstacle at $0.60.
XRP is presently trading at $0.5448, reflecting a 1.05% decline over the past 24 hours. EGRAG suggests that weekly closes above any of these resistance points would signify robust support and the potential for a sustained upward trend.
Despite facing resistance, XRP has displayed resilience at lower boundaries, consistently finding support levels with higher lows, as highlighted by EGRAG. However, he cautioned that a downturn in Bitcoin could breach these defenses, leading to a more significant decline for XRP.
Nevertheless, EGRAG maintains confidence in XRP’s potential to reach $5. His latest chart outlines a trajectory for the asset to attain this price target, with the previously mentioned 90-day timeline for the $5 goal remaining feasible, according to his analysis.