Published in: Cryptocurrency

XRP Technical Analysis Points to Potential Breakout, Traders Cautiously Optimistic (crypto-news-flash)

Author vaultboy.io

Published on: 12 January 2024

• XRP’s price may be ready to break out, with a long-term target above $22, according to chart specialist Egrag Crypto.

• A symmetrical triangle pattern suggests an impending price move, while Fibonacci levels indicate potential resistance points.

A recent technical forecast by chart specialist Egrag Crypto suggests a potential shift in XRP’s trend. The 5-day XRP/USD chart analysis highlights the possibility of a significant price breakout with a long-term target exceeding $22.

#XRP: IT IS BREWING:

The chart for #XRP is tightening up like a pressure cooker ready to blow! An eruption seems inevitable, and the anticipation is rising faster than ever. #XRPArmy STAY STEADY, The pressure is mounting, and it looks like something massive is about… pic.twitter.com/soWdUCvGH4

— EGRAG CRYPTO (@egragcrypto) January 2, 2024

Symmetrical Triangle Pattern Signals Opportunity

Egrag Crypto’s examination of the XRP/USD chart reveals a symmetrical triangle pattern, a formation often associated with a period of consolidation preceding a substantial price shift. The symmetrical triangle in XRP’s price chart since early 2017 indicates a narrowing range, hinting at an impending breakout. This pattern captures the attention of traders and investors alike, as it suggests that the price of XRP may be gearing up for a noteworthy move soon.

Egrag Crypto’s analysis delves into Fibonacci retracement levels, which serve as crucial reference points for traders. According to the chart specialist, these levels are poised to be significant resistance points in XRP’s journey.

The immediate Fibonacci level to watch is the 0.5 Fibonacci level, situated at approximately $0.7579. Beyond that, the 0.618 level, around $1.1150, presents another substantial resistance point. Should the price manage to surpass these levels, the chart suggests an ambitious target at $1.9704, corresponding to the 1 Fibonacci level.

Two Scenarios for XRP’s Breakout

Egrag Crypto outlines two possible scenarios for XRP’s anticipated breakout from the symmetrical triangle pattern, offering traders valuable insights for their investment strategies.

Scenario One: Early 2024 Breakout

In the first scenario, the chart specialist predicts a potential breakout around February 10, 2024. To trigger this breakout, XRP would need to breach the 0.5 Fibonacci retracement level. Should this occur, the price may target the $1.1150 level, where strong resistance is expected. Following this, a retest of the breakout level could set the stage for a parabolic rise into 2025.

Scenario Two: Mid-2024 Breakout

Alternatively, Egrag Crypto presents a scenario in which XRP’s price initially declines toward the lower trend line of the symmetrical triangle. Should support hold, the price could ascend towards the upper trend line, with a breakout projected around July 4, 2024, specifically at the 0.5 Fibonacci level. After this breakout, the 0.702 Fibonacci level at $1.1150 could serve as a local high before a retest of the symmetrical triangle’s breakout, potentially paving the way for a significant bull run.

XRP’s Lackluster Performance

Despite the technical analysis pointing towards potential growth, it’s essential to consider XRP’s recent performance. The cryptocurrency has failed to reflect the dynamism in the market and has been caught within a narrowing price range. Recent activity has even seen a breakdown from this consolidation without a substantial recovery.

One of the critical indicators signaling concern is XRP’s dip below the 200-day Exponential Moving Average (EMA), a benchmark for long-term market sentiment. The break below this level is typically viewed as a bearish signal, suggesting a continuation of bearish tendencies in the market.

Another concerning factor is the increase in selling pressure, as evidenced by heightened volume accompanying downward price movements. This rise in selling pressure is typically interpreted as a bearish sign, indicating that more traders are looking to exit their positions than enter new ones.

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