XRP Approaches Crucial Turning Point: Analyst Suggests Major Growth Ahead If Key Level Holds

As XRP strives to gain momentum, an analyst has confirmed that the altcoin is currently “doing what it needs to do” to maintain its bullish trend, emphasizing several critical structures across significant timeframes.

Key Takeaways

XRP is testing a crucial support level at $1.80, with the potential for significant price movement.
There is a bullish reversal pattern forming that may lead to a new all-time high.
A break above descending resistance levels could trigger a further rally.
Maintaining support around $1.80 is essential for potential upward momentum towards $2.70.

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A recent analysis indicates that XRP is at a "critical inflection point" as it navigates the $1.85-$2.00 price range. With strong macro support around $1.80, the cryptocurrency could be gearing up for substantial price expansion if it holds this level. The analyst highlights key reversal patterns that suggest a transition towards a new primary uptrend if XRP defends this critical support area.

XRP Approaches Critical Turning Point

Following a retest of the $1.90 zone on Friday morning, XRP experienced a 4.6% bounce within its local range. Over the past week, the cryptocurrency has been fluctuating between $1.85 and $2.00 but has struggled to maintain the upper end of this range.

Market analyst ChartNerd pointed out a significant reversal pattern that might indicate a substantial price rally is imminent. He noted that XRP is at a “critical inflection point” as it tests a macro support zone.

According to the analyst, the formation of a running flat ABC correction suggests that the failure of the ‘C’ wave to break previous lows indicates underlying bullish strength. XRP has mirrored this structure for the past 400 days, which could suggest a breakthrough leading to a new primary uptrend if it resolves positively.

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XRP displays a running flat ABC correction. Source: ChartNerd on X

The chart illustrates that “the wave counts recurring through the structure are evident in XRP’s price movements." As long as the macro support around $1.80 holds, the C wave “could be supporting the bullish position.”

“We could be just building a base above $1.80, marking the C wave in this running flat correction before the major breakout,” the analyst stated.

He did acknowledge a possible scenario where XRP dips below this crucial support before executing a V-shaped recovery. However, he cautioned that if the price closes beneath this support level and retraces as resistance, it could lead to further declines.

Defending Macro Support at $1.80

ChartNerd emphasized the significance of the $1.80 support level, indicating that XRP has been maintaining this zone for over a year, which could set the stage for a new all-time high (ATH) rally.

“This is a macro accumulation zone, and we also clearly see two major levels of descending resistance for XRP,” he explained. He pointed out that when the first significant descending resistance was broken, it led to a new all-time high.

“It’s quite straightforward: currently, we have descending resistance above us, and there was a key contact point with this resistance at the $2.40 high. Thus, breaking this descending resistance will truly kick off XRP's potential expansion.”

Based on this information, ChartNerd asserted that if XRP can hold the $1.80 support level, a comparable rally is likely to follow. He also highlighted a bullish reversal structure forming just beneath the important $2.70 resistance on XRP’s chart.

The analysis noted that XRP has created a three-month falling wedge pattern that began breaking out in early January. Currently, the price is retesting the breakout level of this pattern, possibly preparing for an upward move toward its original formation level.

“So, XRP just needs to protect the $1.80 support, and this is where we could anticipate that major expansion as we look to target $2.70,” he concluded, pointing to potential movement back to its pre-Q4 range.

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XRP trades at $1.95 on the one-week chart. Source: XRPUSDT on TradingView