- XRP must close above $2.83 to confirm strength and target $4.20 next.
- Support at $2.22 and $2.04 could prevent a bearish breakdown below key levels.
- A break below Fibonacci 0.888 may trigger a dip before a bullish recovery.
XRP’s correction has ended, pointing to a potential price surge, with one analyst setting a target of $5.85.
Analyst Dark Defender believes XRP has finished its correction and is expected to target $2.42 first.
The key supports are at $2.22 and $2.04, while analyst Dark Defender sees potential for a move towards $4.2932 and $5.8563. This prediction is based on XRP’s ability to sustain momentum above the Ichimoku cloud, a critical indicator for trend confirmation.
Bullish Scenario: Can XRP Break Key Levels?
Meanwhile, EGRAG CRYPTO highlights the significance of the Blue Channel, which has established an equilibrium at its lower boundary. This technical structure suggests that a rebound is imminent, setting the stage for three potential short-term scenarios.
For XRP to confirm a macro uptrend, it must close above $2.83. Achieving this level would signal strength and open the door to a $4.20 price target. Moreover, as time progresses, these targets could shift higher, further reinforcing the bullish sentiment.
What If Support Fails?
Despite the optimism, a retracement remains a possibility. XRP may retest the Previous Daily Low (PDL), which lines up with the Fibonacci 0.888 level. This area provides strong support, but a sustained break below for three days or more could indicate continued bearish pressure.
If the level holds, traders should monitor key levels, including the Previous Daily High (PDH) at $2.40, Previous Weekly High (PWH) at $2.97, and Previous Monthly High (PMH) at $3.07. Higher closing prices will reinforce market confidence and structural strength.
A Bear Trap Scenario
In a pessimistic case, if XRP breaks below the Fibonacci 0.888 level and the PDL, a decline toward the Fibonacci 0.786 level may occur. This could lead to a fair value gap fill.
Related: XRP’s Resilience: Analysts Bet on Major Gains, Key Catalysts Emerge
However, EGRAG CRYPTO believes this scenario may be a bear trap, potentially aligning with Bitcoin’s retest of $70,000. If true, XRP could experience a false breakout before resuming its upward trajectory.
XRP Market Dynamics
At press time, XRP is trading at $2.41, reflecting a 4.25% increase over the past 24 hours. Over the last seven days, the cryptocurrency has gained 3.37%, showing resilience despite market fluctuations.
Related: XRP breaks key resistance, analysts eye potential rally, making it the crypto to watch this weekend
XRP’s 24-hour trading volume stands at $3,522,693,789, reinforcing the active participation of traders. With a circulating supply of 58 billion XRP, the asset boasts a market capitalization of $139,825,634,580.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.