- Lark Davis initiates a long position on XRP at $2.20, targeting $2.45 with a stop loss at $2.17.
- XRP is testing its 50-day EMA, with a bounce from the 20-day EMA signaling short-term strength.
- Broader outlooks suggest XRP could reach $10–$40 based on Elliott Wave analysis.
Crypto analyst Lark Davis has watched XRP closely and has brought out a new XRP trading setup as the asset attempts to break through a major technical barrier. Davis shared on social media that XRP is currently testing its 50-day Exponential Moving Average (EMA). He feels this could be a setup for the price to move higher soon.
Recent XRP Price Action and Support Test
Davis also pointed out that XRP recently retested support at the 20-day EMA (yellow line) amid profit-taking moves from traders. For context, XRP posted notable green candles on Tuesday and Wednesday.
During this time, the price moved up 11.5%, from $2.06 to $2.30, before retracing to revisit lows near $2.10. However, XRP has since bounced off this support, a sign of short-term strength from buyers.
At press time, XRP is trading at $2.20, up 1.17% today. Meanwhile, analysts like Davis believe more upside is possible. As a result, he suggested entry points, targets, and stop-loss levels for a short-term XRP long position.
Related: Can XRP Break $2.30 Resistance? Key Drivers for Apr 26 Price Action
Davis’s XRP Long Trade Setup: Entry, Target, Stop-Loss
According to Davis, he is entering a long position at $2.20 (betting on the price going up); his target for taking profit is $2.45. Interestingly, this $2.45 target aligns with the long-standing trendline that has capped XRP’s price action since January 2025, when its previous rally ended.
Davis believes the ongoing upswing could face rejection at this level, making it a strategic point to exit. This move would represent an 11–12% gain from the entry level, a return that could be even more amplified with leverage.
To manage risk, he said he’s placing a stop-loss order at $2.17, just under the 50-day EMA support, to minimize downside risk if the setup fails. If the current attempt does not hold, Davis noted that a second opportunity could emerge around the 20-day EMA at $2.13.
Contrasting View: Longer-Term XRP Breakout Predictions
While Davis is targeting short-term profit from XRP, other analysts have a longer-term outlook for the coin.
Related: Don’t Ignore XRP’s Signals: Price, Volume, On-Chain Data All Flash Green
For instance, Korean Elliott Wave analyst XForceGlobal recently suggested XRP is preparing for a historic breakout. According to his Elliott Wave analysis, XRP could target a minimum of $10, implying a 350% gain, or even as high as $40, depending on market strength.
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