Market analyst EGRAG remains confident of an XRP rally to $5, recently calling attention to crucial resistance levels to watch as the token navigates the tumultuous path.
EGRAG’s latest analysis on this subject featured a complex chart detailing XRP’s current market situation. He called attention to a set of two parallel ascending channels, a blue and a red one, that have dictated XRP’s price movements since inception.
The Blue and Red Channels
The blue channel is atop the red channel and contains some significant resistance points for XRP during a potential breakout.
On the other hand, the red channel, which resides underneath the blue channel, contains some crucial support points. These support levels have been instrumental in hedging against substantial drops in times of a downturn.
Interestingly, XRP does not spend a lot of time in either of the channels. The last time the token traded in one of the channels for an elongated period was when it spent 581 days in the red channel, from 2015 to 2017. After its time within the red channel, XRP staged a massive rally to the ATH at $3.31.
Amid the 2017/2018 rally, XRP surged above the red channel and the blue channel. Despite the retracement that followed, the asset continued to trade above both channels. However, it slipped into the blue channel during the slump in April 2022, and has remained in this channel.
EGRAG confirmed that XRP has spent 602 days in the blue channel. According to him, if the dynamics of the red channel align with those of the blue channel, XRP could quickly drop to $0.28 before a rebound to $0.41. However, this would set the stage for a potential rally.
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It bears mentioning that XRP also witnessed a massive slump during its time in the red channel, as it collapsed to a low of $0.003 in January 2017. EGRAG believes this drop, which would result in a 50% slump in value, is necessary this time for another surge.
Crucial XRP Resistance Levels
The analyst also highlighted stern resistance points from the middle to the top of the blue channel. He noted that traders should pay close attention to these levels. These resistance points are currently at $0.75, $0.93 and $1.3. XRP also faces a roadblock at $0.60.
XRP currently changes hands at $0.5448, down 1.05% over the last 24 hours. According to EGRAG, if the cryptocurrency records weekly closes above any of these resistance points, it would signal strong support and the potential for sustained uptrend.
However, XRP has shown resilience at the lower boundaries. EGRAG emphasized that the token has continued to find support levels at higher lows. However, he noted that a Bitcoin slump could break these defenses and result in a steeper decline for XRP.
Despite this possibility, EGRAG reaffirmed his confidence that XRP could hit $5. His latest chart details a path for the asset to reach the price goal. According to him, the previously-mentioned 90-day timeline for the $5 target remains plausible.
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Source: https://thecryptobasic.com/2024/01/20/xrp-path-to-5-analyst-shares-next-resistance-levels-to-watch/?utm_source=rss&utm_medium=rss&utm_campaign=xrp-path-to-5-analyst-shares-next-resistance-levels-to-watch