According to data from CoinMarketCap, XRP recorded a substantial price decline in the past trading week losing 16.78% of its market value. Currently, the prominent altcoin finds itself in a consolidation zone potentially gathering momentum for its next breakout.
XRP Price At Crucial Juncture
In a recent X post, popular digital asset expert Egrag Crypto shared a technical analysis of the XRP market presenting both possible bullish and bearish scenarios. This analysis was based on Fibonacci retracement levels which identifies potential support and resistance levels and the 21-day exponential moving average which smoothens out price data giving more weight to recent prices.
According to Egrag Crypto, XRP is expected to range between $2.27 (Fib 0.382) and $2.45 ( Fib 0.5). However, there is potential for prices to swing within a wider boundary of $2.06 (Fib 0.236) – $2.65 (0.618). Notably, the altcoin gained by 1.67% in the past day. However, a daily price close above the 21 EMA which is currently at $2.70 is crucial in confirming any uptrend.
Interestingly, if market bulls are able to force a strong close above $2.80 (Fib 0.702), this would suggest a major bullish signal indicating the current XRP buying pressure is sufficient to break higher resistance levels. On the other hand, Egrag Crypto warns that traders must avoid any price fall to $1.77 which may not necessarily invalidate the current bullish structure but would suggest rising bearish pressure.
XRP Market Overview
At the time of writing, XRP trades at $2.49 after a 4.43% increase in the last 24 hours as previously stated. However, the asset’s trading volume is down by 56.85% indicating a lack of interest and uncertainty in the market. However, considering XRP’s overall bearish form in the last seven days, a fall in trading volume may also suggest reduced selling pressure pointing to a potential reversal.
Generally, XRP investors remain bullish on the asset’s prospects driven by several factors but most notably by the potential of an XRP Spot ETF. In the past week, there were significant developments on that front as the Chicago Board Options Exchange filed 19b-4 applications with the US Securities and Exchange Commission (SEC) seeking to list and trade the XRP spot ETFs proposed by WisdomTree, Bitwise, 21 Shares, and Canary.
Once the SEC acknowledges receipt of these applications, the US regulator is granted a 45-day window – with potential extensions of up to 240 days – to assess and make an approval decision on the proposed ETFs.
