A popular cryptocurrency analyst has outlined three potential scenarios for XRP price movement as the asset's dominance in the market grows.
Optimistic Outlook
In the bullish scenario, XRP needs to close above $2.83 to demonstrate macro strength. This could pave the way towards a $4.20 target. The analyst suggests that these targets may rise further over time, strengthening the case for bulls.
Conservative Approach
The second scenario presents a more measured view. EGRAG notes the possibility that XRP may retest the Previous Daily Low (PDL), which aligns with the Fibonacci 0.888 level—a zone of strong support. A sustained break below this level for three or more days could indicate persistent bearish control. However, if support holds, investors should monitor several key levels: the Previous Daily High at $2.40, Previous Weekly High at $2.97, and Previous Monthly High at $3.07. According to the analyst, higher closing prices would provide increased structural confidence.
Pessimistic Scenario
In the bearish scenario, a break below both the Fibonacci 0.888 level and the PDL could trigger a decline towards the Fibonacci 0.786 level and potentially fill the Fair Value Gap. Interestingly, EGRAG suggests this could actually be a bear trap and false break from the Blue Channel, possibly coinciding with Bitcoin retesting the $70,000 level. The analyst believes such a development could present 'another generational buying opportunity.' However, sustained breaks below these levels might indicate an unrecognized bear market affecting the entire crypto space.
XRP dominance shows remarkable strength, approaching record levels from 2021. A successful closure above the Fibonacci 0.5 level could lead to a surge towards 15-20% market dominance, aligning with historical highs from 2015.
