XRP prices are down by over 5% in the last day amid a broader price correction in the general crypto market. The prominent altcoin now trades around $2.81 with no indication of a potential pause in selling momentum. While this crisis persists, popular X analyst with the username Egrag Crypto has helped identify the currently crucial support and resistance levels for the market bulls.
Hold $2.65 Or Risk Collapse, Break $3.12 And Set For Rally
In an X post on August 2, Egrag Crypto shares an interesting technical insight on the XRP market currently undergoing an intense correction wave. According to the renowned analyst, macro analysis indicates the altcoin retains a bullish structure; however, the present price correction can only be terminated via two pathways.
Firstly, micro price analysis suggests that XRP must achieve a daily price close above $3.12 to signal a market bottom entry. In doing so, the cryptocurrency reclaims a pivotal resistance level, paving the way for a potential rise to higher levels such as $3.60.
On the other hand, the immediate major support level lies around $2.65. Egrag Crypto explains that a continuous price decline to successfully retest this price floor may ignite a rally, pushing XRP to its current all-time high of $3.84. However, any decisive price break below $2.65 could create a rather dire situation, pointing to potential lows around $2.19.
XRP Surge To $17 Remains On The Cards
In other news, Egrag Crypto’s analysis also reveals that XRP remains in a macro, long-term cyclical pattern that shows a multi-year bullish cycle, with recurring structural traits. The key elements in this pattern include bullish pennant formation, which suggests a continuation pattern, the 21 EMA (Green dotted line) that historically aligns with significant trend shifts, the Support Arc (Red line), and the Market Cycle Top (blue line).
Notably, XRP has since emerged from the bull pennant signaling intentions to maintain its current uptrend. However, the altcoin faces an insurmountable resistance around $3.84, which aligns with an intersection between the mid-cycle top and the 21 EMA line. If XRP can successfully break past this price barrier, investors should anticipate a direct rally to the projected cycle top $17, representing a potential 525% gain on present market prices.
At the time of writing, XRP trades at $2.81, reflecting a 5.32% decline in the past day as earlier stated. This recent price fall underscores a turbulent trading period for the altcoin, which lost over 11.38% of its market value in the last week. However, a monthly price gain of 22.18% indicates a significant number of investors remain in profit despite these corrections.
