- Despite the recent price decline, XRP’s macrotrend is still optimistic, despite short-term resistance above $2.7000.
- Strong purchasing activity is seen at the $2.5000 and $2.2872 support levels, which keep the price of XRP stable during market swings.
- Historical volatility patterns suggest XRP could see significant price movement, similar to past surges from $1.6000.
XRP recently rejected from the 21 EMA on the 4-hour timeframe, signaling a short-term bearish trend. The price declined by 1.07%, bringing XRP to $2.9256. However, with over two hours remaining in the current candle, the market remains unpredictable. Despite this temporary dip, market analyst Egrag Crypto, suggests that the macro trend remains strongly bullish.
Key Price Levels and Market Sentiment
The data reveals important resistance levels at $2.7000 and $2.6800, shown in green. These levels have proven to be barriers, where selling pressure intensified. On the other hand, the support levels at $2.5000 and $2.2872 have attracted buying interest, stabilizing the price at these points.
If XRP falls below the $2.5059 level, marked in red, bearish momentum could increase. Hence, traders should monitor this level closely for potential downside risks. Additionally, the short-term trend remains positive, as seen from the yellow moving average line. This line shows price fluctuations, highlighting that an uptrend from $1.6000 to $2.7000 previously occurred. Following this rise, consolidation occurred within the $2.00-$2.50 range.
Historical Context and Future Implications
Looking at the broader picture, historical patterns play a role in the analysis. A similar retracement of 65% in 2017 led to a 1700% surge, followed by another 700% increase. This historical data suggests that XRP could experience similar volatility in the future. Support levels at $1.4338 and $1.5952 are crucial. If XRP drops below $1.5952, deeper corrections may follow. However, if the price maintains levels above $2.50, the bullish trend will likely persist.
