- 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.
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