Despite the recent market downturn, hope remains for XRP bulls. Renowned analyst EGRAG has pinpointed a crucial support zone for the struggling asset and outlined a roadmap for a potential surge to a staggering $7.5.
Support Found, Higher Lows Signal Strength
EGRAG’s recent report dives into XRP’s technical analysis, highlighting a critical support level amidst the ongoing slump. A weekly chart showcased XRP’s consolidation between $0.75 and $0.46 since August 2023. Notably, since recovering from a low of $0.4853 in January, XRP has exhibited “higher lows” on the weekly timeframe. This trend signifies growing strength, allowing XRP to resist drops below $0.56 despite the broader market sell-off.
EGRAG emphasizes the newfound “robust support” at $0.59. He asserts that XRP is unlikely to close a week below this level, which coincides with the Fibonacci 0.382 retracement point. While short-term dips below $0.59 on the 4-hour timeframe are possible, EGRAG downplays their significance for XRP’s long-term trajectory.
Road to $7.5: Breaching Resistance Levels
EGRAG utilizes Fibonacci retracement levels to map XRP’s potential path towards a hefty $7.5 price target. The first hurdles to overcome are the Fib. 0.702 and Fib. 0.786 resistance levels, sitting at $1.16 and $1.3, respectively. A successful breakout above these points would set XRP on course to confront the crucial Fibonacci 1 level, currently at $1.96. This price point proved too strong for XRP in April 2021.
Should XRP conquer this barrier, further resistance awaits at Fib. 1.272 ($3.32). Surpassing this level would propel XRP beyond its current all-time high, ushering in a price discovery phase. EGRAG’s roadmap outlines subsequent targets at Fib. 1.414 ($4.37) and the pivotal Fib. 1.618 ($6.47). Breaching this final resistance point would be necessary to reach the ultimate goal of $7.5.
Also Read: Crypto Market to Double by Year-End? Ripple CEO Brad Garlinghouse Makes Bold $5 Trillion Prediction
Renewed Interest and Rising Volume
Despite the price drop, XRP is experiencing a resurgence of interest. Transaction volume has climbed significantly since a low of $277 million on March 31st. Messari data reveals that volume has consistently surpassed $1 billion throughout April, currently sitting at $1.33 billion. This represents a 26% increase over the past week and a staggering 169% jump compared to a month ago.
While the road ahead for XRP is paved with challenges, EGRAG’s analysis offers a glimmer of hope for long-term holders. With support levels identified and resistance points mapped out, XRP’s journey towards $7.5 has a clearer direction. However, investors should remain cautious and closely monitor market conditions before making any investment decisions.
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