XRP Price at a Crucial Crossroads: Analyst Outlines Clear Breakout Guidelines

The XRP monthly chart is at a pivotal moment, according to well-known analyst Egrag Crypto. He provides a straightforward analysis featuring three possible outcomes for XRP's price movement, currently trading near $2.20. Egrag emphasizes critical price levels for XRP to maintain its bullish momentum while warning of potential downside risks.

Key Takeaways

Critical Price Range: XRP needs to close above $2.60 to sustain bullish trends.
Support Level: A dip below the 21-month EMA could signal a significant trend reversal.
Institutional Interest: The approval of the US Spot XRP ETF may drive further bullish momentum.

XRP

XRP Must Maintain Above $2.60 to Remain Bullish

According to Egrag Crypto, a prominent bullish advocate for XRP, the first key price point to watch is $2.60. This level aligns with the 0.5 Fibonacci retracement on the monthly chart. Egrag characterizes a close above $2.60 as bullish, although he warns that risks would still remain. The chart illustrates that XRP has tested this level multiple times earlier in the year before eventually breaking above it in July. Recent price movements, however, have intensified focus on this critical level again.

If XRP manages to surpass $3.40, identified by Egrag as the crucial 0.888 Fibonacci retracement zone, the outlook becomes significantly more optimistic. A close above this point would confirm a strong macro breakout, with Egrag expressing excitement by saying "we are so back." The chart supports this notion, showing tight compression just beneath this level, suggesting that if buying pressure is sufficient, a decisive breakout could lead to new all-time highs.

XRP Price Chart. Source: @egragcrypto On X

Bearish Scenario: Closing Below 21 EMA Risks Trend Breakdown

On the flip side, Egrag outlines a clear downside scenario. He cautions that if XRP closes below the 21-month EMA, it would indicate a considerable failure of the bullish trend. He did not mince words, stating, "we are f**ked, no sugar-coating it."

Current Trading View
Current XRPUSD trading at $2.19. Chart: TradingView

The chart shows the 21 EMA resting in the $1.83-$1.90 range, which serves as the last major support zone on the monthly timeline. Falling below this threshold could revert XRP to a more significant corrective phase, erasing much of the year’s gains.

A promising development emerged towards the week's end. 21Shares announced that its US Spot XRP ETF, designated as TOXR, has received SEC approval and will launch on Monday. This forthcoming launch suggests that institutional interest in XRP is just starting. If inflows mirror the early enthusiasm by other ETF issuers, it could bolster the bullish scenario Egrag has laid out, especially if XRP surpasses $2.60 in December.

Featured image from Pixabay, chart from TradingView