XRP price action has arrived under heavy pressure in recent days along with the rest of the market, falling back into a key support region around $1.10 sellers are still in control short-term momentum.
The drop has immediately placed XRP in a notable zone on the monthly candlestick long-term chart. In particular, the technical analysis of crypto analyst EGRAG CRYPTO indicates that XRP may still face a liquidity test before much bigger move above $10.
XRP in face-melting phase
EGRAG’s analysis is based on the monthly candlestick timeframe chart showing XRP’s behavior around the 50 and 100 month exponential moving averages. According to the analyst, XRP has shown a recurring pattern on higher time frames when it decisively loses the 50 EMA. The collapse is usually followed by weak momentum, emotional selling and a latest liquidity survey in the 100 EMA before the next rally starts again.
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That model is important because XRP’s current monthly candle has already opened below the 50 EMA, putting the price action in a vulnerable position. This positions XRP in a face-melt phase where it has the opportunity to drop towards the 100 EMA as the market continues looking for its true macro bottom. The analyst’s projected path first leaves room for more downside, with the chart pointing to a possible crash below $1.
However, one of the more counterintuitive dimensions of EGRAG CRYPTO’s analysis is what it does while anticipating further downsides. Rather than waiting for a confirmed reversal, the analyst actively builds a position across a range of entry prices from $1.09, $0.92, $0.85 and even $0.70, treating each level as a probability zone.
The figures show that XRP is above $10
Another interesting part of the analysis is not the possible decline, but the upward numbers that follow. The EGRAG graph shows an important recovery path from the crisis current support range and to a break above the current cycle high of $3.65. The projections show upside levels of $9, $13, $17, $20 and $27.
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The point of EGRAG is that the exact bottom may matter less if XRP ultimately reaches these expected bullish targets. Risk management is more important than just that catch the exact bottom, and his example compares entries of $1.09, $0.92, $0.85, or $0.70 with upside targets of $7, $8, $13 and double-digit prizes. Get in at those low prices won’t matter when XRP achieves those lofty goals.
At the time of writing, XRP is trading at $1.14, down 12% in the past seven days. A move from the current price of $1.14 to $10 would require a rally of approximately 777%. A rise to $13 would mean a gain of more than 1,040%. Finally, a rally to the $27 level on the chart would require XRP to rise by more than 2,260% from its current range.
Featured image from Adobe Stock, chart from Tradingview.com