XRP Price at a Crossroads: Analyst Warns of Critical 3-Day Candle Signal
The XRP cryptocurrency has been undergoing a period of consolidation and retracement in recent weeks, leaving investors keenly watching for the next major price movement. According to prominent market analyst Egrag Crypto, a crucial signal emanating from XRP's 3-day candle chart could soon determine whether the asset maintains its bullish narrative or faces a significant downturn.
Key Price Levels and Chart Patterns to Watch
Egrag Crypto, known for his technical analysis, highlighted a "measured move breakdown" within a descending triangle pattern, which suggests a potential move towards the $2.14 mark. Currently, XRP is trading within a tight range of $2.40 to $2.60, a zone that has seen multiple retests over the past few months. While a brief downward wick has been observed, the analyst notes that the overall structure still indicates consolidation within this range. The analyst emphasizes that the $2.65 price point is a critical resistance level. A sustained break and hold above this threshold could reignite bullish momentum for XRP, paving the way for further upward movement. Conversely, a failure to maintain price levels around $2.5, especially if the 3-day candles begin closing below the $2.00 to $1.91 range, could trigger deeper retracements. Such a breakdown would raise concerns about the integrity of XRP's current market cycle and might even suggest that the recent peak near $3.65 was the cycle's top.
Bullish Outlook Amidst Volatility
Despite these cautionary signals, Egrag Crypto's broader perspective leans bullish. He notes that XRP's price action above the 200 Exponential Moving Average (EMA) indicates that the bullish setup remains valid. The next 60 to 90 days are expected to be pivotal, as XRP's reaction to the identified price levels will largely dictate its trajectory for the remainder of the year. In a separate analysis, Egrag Crypto presented a probability model, assigning a 57% chance for XRP to achieve a new all-time high in the coming months. However, he also acknowledged a 43% probability of a significant decline, which, from an accumulation standpoint, could present an opportunity for traders to acquire XRP below $1. Personally, the analyst is positioning himself for the bullish scenario, anticipating a major price breakout.
