Egrag Crypto, a renowned crypto analyst, took a deep dive into the XRP price trajectory in a recent tweet, highlighting the importance of the Volume Profile Visible Range (VPVR) in analyzing potential resistance levels and charting future price opportunities.
Using the VPVR metric, Eggrag orphan from the Value Area High (VAH) and Low-Value Area (VAL), which respectively delineate the highest and lowest prices within the total value area of 70%. He noted: “To me it is crystal clear: XRP has broken out of a multi-month trendline and has successfully retested the breakout.”
XRP price is facing stiff resistance
This breakout, as Egrag highlighted, positions the XRP price for a notable rise. However, for XRP to chart a stable long-term trajectory, “laying a strong foundation above VAH is crucial.” He further emphasized the importance of XRP crossing the $1 threshold, describing it as both a “structural milestone” and a “psychological barrier.”
The VPVR, illustrated in Egrag’s chart, is an essential tool for traders. This histogram (on the right) captures the volume traded at different price points over a specific time frame. It is particularly adept at revealing the most actively traded price ranges, making it a robust tool for identifying support and resistance levels.
Egrag’s data suggests a VAL for XRP of around $0.16, a point of control (POC) of around $0.20226, and the crucial VAH of $0.55. On the potential of the could push price to rocket-like levels.”
However, it is crucial to consider that XRP needs to cultivate a new volume profile above $0.55. Currently, trading volume above this level is thin, which could require an initial pause between $0.55 and $1.
Egrag’s second graph reinforces this VPVR analysis. If bulls can overcome the $0.55 resistance, Egrag predicts an XRP rally towards $1, a level last reached in mid-June following Ripple’s summary judgment in the case against the SEC.
This previous break above $1 did not translate into a sustained increase, indicating the challenges of this threshold. But with patience, Egrag envisions XRP marching toward the “next macro resistance,” which is pegged at a lofty $4.5.
4-hour chart XRP/USD
On the shorter time frames, especially on the 4-hour chart, the XRP bulls suffered a setback today. XRP price fell below the 23.6% Fibonacci retracement level at $0.5273, which could threaten a decline towards the 200 EMA ($0.5168). This statement could be invalidated if XRP recovers the 20 EMA at $0.5242.
Featured image from Shutterstock, chart from TradingView.com