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- EGRAG identifies June as XRP’s most important month this year.
- XRP tests macro support while bearish sentiment dominates market expectations.
- Key support levels could determine XRP’s next major direction.
June may be one of the most significant months for XRP this year in terms of technical analysis, according to Crypto analyst EGRAG CRYPTO. The analyst’s latest market evaluation noted that XRP has broken below the 50-month EMA line, and that it is nearing a long-term trend line that has traditionally played a major role in significant market turns. The price action of EGRAG is nearing another major decision-making moment, and could either mark the final stages of a deeper correction or be the impetus for a major reversal that could surprise bearish traders, EGRAG reports.
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June Opens With Multiple Warning Signs for XRP
XRP started the month of June under the 50-month Exponential Moving Average (EMA), which has been a significant level during previous market cycles, according to EGRAG. They have come up before when the sentiment in the market was overwhelmingly bearish, the analyst said. Concurrently, XRP started on or just below a long-term macro trendline that has been in place for multiple years.
EGRAG said this is even more important with June’s historical performance. Data shared by the analyst shows that XRP declined 17% in June 2014, 39% in June 2018, and 32% in June 2022. Also, XRP has been stuck in a monthly falling wedge pattern. The formation is indicating a continuation of price compression and a series of lower highs. A breakout from the wedge would be necessary for any bottom to be confirmed in the long term, however, EGRAG said.
$0.90 to $1.30 Zone Becomes Market’s Main Battleground
However, in spite of rising concerns, EGRAG believes that XRP has arrived in a pivotal support zone which might dictate their next big price change. The analyst says the range of $0.90 to $1.30 is the most critical range for buyers and sellers. If it does not break below that range, then at least a bottoming structure could develop. Furthermore, it may raise the odds that the bears’ any sentiment will prove wrong at some point. EGRAG contended that markets can go against the majority and especially when the market is extremely pessimistic.
Moreover, if XRP manages to break back from the 50-month EMA and the White Macro Trend Line, it will look much better, the analyst said. This recovery would take away the prevailing bearish sentiment and bolster a bigger turnaround. XRP is in a state of historical weakness, a negative sentiment, and major technical testing for the month of June. The downside risks are still present, but analysts are keen to see if major support levels can continue to make sense and possibly turn the current situation into the “bear trap” scenario EGRAG outlined.
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