Skip to content
- XRP maintains macro bullish structure while key resistance breakout levels approach rapidly.
- EGRAG CRYPTO highlights XRP compression pattern signaling possible major expansion ahead soon.
- Analyst says XRP remains bullish above critical two-month EMA support zone.
This week was another consolidation phase for XRP, with traders eagerly watching for key higher time frame levels that are influencing the asset’s near-term trajectory. Despite the recent volatility, crypto price action has slowed down, but EGRAG CRYPTO believes that XRP’s overall bull run was still intact despite the rising concerns on a potential cycle top.
Also Read: Core Scientific Shares Slide After Massive Quarterly Loss Overshadows Revenue Growth
2-Month EMA Continues Defining XRP’s Macro Trend
The most critical signal EGRAG CRYPTO is currently seeing is on the 2-Month time frame of XRP, and the 21 EMA indicator. According to EGRAG CRYPTO’s a recent post on X, XRP remains above the 2M 21 EMA—“the critical line between macro bull and macro bear market”—which is still in the near term bull market.
The analyst pointed out that a lot of market participants are still preoccupied with short-term market noise and forget to look at the bigger picture of XRP. Apart from that, he pointed out that XRP has been able to keep the lower levels for the past few years and is still trending upwards on a longer time frame, which helps the macro scenario.
Additionally, the chart included in this report pointed to a sustained period of compression over several market cycles. This has been a pattern for XRP in the past and the cryptocurrency has kept upholding it even as it was subjected to several deep corrections in the last bear markets.
The analysis shows that this compression over a number of years is often the precursor to large expansion phases. EGRAG CRYPTO also drew parallels between XRP’s present configuration and the previous long-term periods it has experienced in the past before significant rallies were initiated.
XRP Must Reclaim Key Resistance Levels for Breakout Confirmation
In addition to the above, the analyst found two major levels of resistance in the chart that could help define the next macro trend of XRP. The chart indicates that XRP will need to overcome the $2.40 and $3.36 levels in order to establish a larger expansion phase.
Further, the chart had predicted a breakout potential to the upper mentioned resistance zone (between $7 and $13) should XRP prove strong above that zone. EGRAG CRYPTO said the market has yet a high likelihood of achieving that expansion goal were bullish confirmation to present on higher time frames.
Probability Model Still Leaves Room for Final Capitulation
The analyst, however, noted some risks on the downside that persist in the market. Based on his probability model, the chances are still 50-55 percent that XRP will have one more capitulation before a decent upward trend takes hold.
Meanwhile, he put the chances of a macro bottom having come earlier in the cycle at 40-50%. This means that the current construction is missing bullish continuation and downside volatility at the end.
The chart also pointed to a critical support area close to the lowest Binance perpetual wick area of XRP. The loss of the area in addition to the 2M 21 EMA would probably make the current bull thesis much more fragile.
Multi-Year Compression Continues Supporting Bullish Outlook
On the other hand, EGRAG CRYPTO kept its long-term outlook on XRP bull cycle intact, with top support levels standing, despite the fact that a cyclical expansion is still very much possible.
XRP’s macro trend is getting the focus as investors await to see if the asset can keep the multi-year compression pattern intact and regain the resistance levels required for a significant breakout phase.
Also Read: Bitcoin Crisis Warning Grows After Avalanche Founder Sounds Alarm On BTC!
