XRP is once again approaching a critical technical point after months of consolidation. Recent asset movements indicate the possibility of a breakout or renewed decline.
Technical Analysis of XRP
According to recent analysis by analyst EGRAG CRYPTO, XRP is trading at $2.24 and is within a major falling wedge pattern. This creates conditions for a potential breakout or further decline. The chart identifies a 'mega falling wedge’ pattern that has confined XRP’s price since its multi-year high of $3.39 in January.
Key Resistance Levels
To confirm a bullish breakout, XRP needs to break several resistance levels, including $2.30, $2.35, and critically, the $2.36 level, which is marked as the breakout point from the wedge. The analyst highlights that a move above $2.65 could signal a broader trend reversal.
Support Zone and Expectations
In addition to resistance, a key support zone is identified, ranging from around $1.77 to $2.05. Should this zone be breached, it could lead to declines down to $1.60 or even $1.47. Losing the bottom of the wedge at $1.47 could be catastrophic for the asset. Analysts also note a significant liquidity pool around $2, which could aid in a rebound without dipping below crucial support levels.
XRP finds itself in a wait-and-see situation, approaching important resistance and support levels. The next few trading sessions could have a decisive impact on the asset's direction.
