XRP Price Approaches Critical Decision Zone, Yet Bullish Momentum Remains Strong

Market analyst Egrag Crypto asserts that the XRP price structure is largely bullish, despite recent challenges in exceeding the $2 mark. The analyst’s chart analysis indicates that XRP is gradually nearing a crucial decision zone, which may influence its next upward trajectory and potentially propel it out of the ongoing consolidation phase.

Key Takeaways

XRP's price structure remains bullish despite difficulty breaking above $2.
The cryptocurrency approaches a decision zone between $2.30 and $2.40, signaling potential price movement.
Key indicators suggest that the bullish trend could continue if XRP holds above $2.00.
A breakout above $2.40 could lead XRP to target prices of $2.70 and $3.13.
Conversely, failing to maintain support at $2.00 may result in a drop to $1.65 or lower.

XRP Holdings by Franklin Templeton's Spot ETF

Current Bullish Outlook for XRP Price

On January 14, Egrag Crypto illustrated that the 3-day chart for XRP displays clear and strong bullish signals. He noted that even with lengthy consolidation periods after bouncing back above $2 this year, XRP maintains a structurally bullish outlook. The price is currently compressing within a descending channel, nearing a key decision zone situated between $2.30 and $2.40. Egrag explained that such compression often follows a significant price movement and can lead to broader price expansion.

In his analysis, Egrag Crypto highlighted essential trends from XRP’s 3-day chart. He pointed out that the 50 Exponential Moving Average (EMA) has begun to stabilize, suggesting a potential easing of selling pressure on XRP. Meanwhile, the 200 EMA continues to rise, reinforcing the view that the overarching trend for XRP remains bullish.

XRP Price Chart

Egrag Crypto also noted that XRP is trading above the EMA cluster, indicating structural strength rather than weakness. He drew attention to the upper limit of the descending channel, which aligns closely with significant resistance areas at $2.30, as marked by a red line in the chart.

As these trends unfold on the XRP chart, Egrag Crypto shared his insights regarding their possible influence on price. A decisive close above $2.40 on the 3-day chart would likely signal XRP’s breakout from the descending channel. According to the chart structure, such a breakout could pave the way toward price targets of $2.70 and $3.13.

Conversely, if XRP faces rejection at the channel’s resistance, Egrag Crypto cautioned that prices may remain range-bound. He concluded that as long as XRP trades above the $2.00 mark, its bullish structure stays valid, with the current consolidation phase viewed as a compression period leading up to possible major price fluctuations.

Potential Risks Indicating a Downtrend

Egrag Crypto’s chart also indicates that the lower boundary of the descending channel touches a critical support area, marked by a white line. Should XRP fail to maintain support at $2.00, and potentially drop below that threshold, it could invalidate the analyst's bullish perspective and trigger a decline towards the next support level at $1.65, representing a decline of approximately 17.5% from current levels.

In the event of further price drops beneath $1.65, XRP's value could plummet towards the previously identified support level around $1.00, indicating a potential near 50% decrease from approximately $2.10.

XRP TradingView Price Chart
XRP Price Struggles | Source: XRPUSDT on TradingView.com