These Are the “Lines of Defense” XRP Must Hold to Avoid a Crash

• XRP dipped to $2.85 before slightly recovering; $2.90 is a crucial midpoint in its bullish structure. 
• Analyst EGRAG sees $3.65 as the breakout level that could spark a major rally.
• He said a drop below $2.33 may trigger a shift into a bear market.

XRP fell to $2.85 this week, losing 5% in the process before recovering slightly. While the decline rattled some investors, market watchers within the XRP community continue to stress that the current price level remains part of a bullish structure so long as key support levels hold.

According to analyst EGRAG, XRP’s price at $2.90 is right at the mid-point of its long-term logarithmic regression channel. He stresses that as long as XRP stays above this level, the setup remains constructive. However, falling below it would invite pressure on the key supports below.

XRP Path to “Valhalla” at $3.65

Also, EGRAG highlighted $3.65 as the breakout point for XRP. Reaching this level and closing above it, which is the “green arch” on the chart, would spark what he describes as “Valhalla price discovery” to send XRP price into never-before-seen price zones. 

While this analysis did not issue any bullish outlook, EGARG has widely teased peak prices of between $20 and $27.

This view is also supported by fellow analysts who have suggested; XRP must close August above $3.3 to confirm a bullish breakout.

The Case for XRP Bear Market 

In his balanced analysis, EGRAG also outlined the series of critical support levels that XRP must defend to avoid a bearish collapse. The most immediate is $2.65, which he called a strong line of defense. According to EGRAG, XRP can “wick” into the zone, but a daily close below would weaken momentum.

Meanwhile, EGRAG called $2.33 the last line of defense, which a fall below will mean the road to the $1 level has started. Notably, $2.33 coincides with the 21 EMA on the two-week chart, which he said is crucial for maintaining long-term bullish potential.

As for $1.90 price, this is the bear market line, according to EGRAG. He said a close below its means the start of bear territory. Meanwhile, this bear market will be further confirmed when the XRP price dips to $1.62. From that point, where to buy back XRP will be prices at around $0.8.

Despite short-term volatility, EGRAG encouraged investors to zoom out to the macro regression channel. He pointed to a possible third major cycle peak in 2025, with XRP price surpassing the double-digit level.

Essentially, according to his outlook, XRP remains in a bull market so long as there is no dip beyond $2.90 and $2.65. Breaking above $3.65 will open the door to major price discovery, while losing $2.33 risks handing control back to the bears.