The XRP price shows signs of recovery after this crashes below $2 earlier last week due to broader market volatility and decline. With his renewed momentumanalysts are now sharing optimistic projections about the future trajectory. New reports from market expert Egrag Crypto highlight the return of a crucial technical signal that a major trend reversal for XRP. Based on the formation of this signal, XRP could be positioning itself for an explosive price increase that contradicts previous bearish developments.
XRP price chart forms a bullish EMA cross signal
Eggag Crypto has described the intersection between two major Exponential Moving Averages (EMA) as ‘the real signal’. In his X-post shared on Monday, he presented an in-depth review of XRP’s three-day chart, focusing on the interaction between the 50-day and EMA of 200 days and predict how this technical signal could influence the future price action of the cryptocurrency.
Related reading
Egrag Crypto highlighted that many traders have interpreted the shrinking distance between these two key EMAs as the early stages of a bear market. However, his analysis shows that this interpretation does not correspond to the The technical structure of XRP. For a true bearish cross to confirm a downtrend, the price of XRP would have to fall decisively below both EMAs as overall momentum begins to weaken.
Currently, XRP is above the 200 EMA with the long-term trendline still rising, indicating underlying strength rather than a classic bear market setup. This suggests that the cryptocurrency could be gradually build momentum to break out of the ongoing downtrend and move to higher levels.
Egrag Crypto’s chart shows that XRP’s current structure is in stark contrast to 2018’s setup. During that cycle, the price of bearish crossover signal was a confirmation rather than the cause of the weakness. Based on the chart analysis, the current market structure of
Where the XRP price is headed
Expanding on its analysis, Egrag Crypto explained that the latest XRP chart setup looks more like the structures we saw before historic bull rallies in 2017 and early 2021. During those bullish cycles, the 500/200 EMAs had tightened and XRP had remained above the 200 EMA.
Related reading
Egrag Crypto noted that the market also entered a compression phase in both years, leading to a sharp increase in volatility explosive price increases. According to the analyst, every time XRP emerged from these conditions, it produced some of its most aggressive vertical moves.
Notably, XRP’s current price chart reflects similar patterns. Egrag Crypto has said that the cryptocurrency may be experiencing a “late-cycle consolidation” rather than the start of one long-term downward trend. These types of compression phases often indicate that momentum is building beneath the surface. Based on its structure, the analyst has predicted that the XRP price is likely to move towards its level last upward leg instead of a completed top.
Featured image created with Dall.E, chart from Tradingview.com