Egrag Crypto market analyst said XRP price structure remains largely bullish despite the cryptocurrency’s recent efforts to break above $2. The analyst presented a chart analysis showing that XRP is slowly approaching a key decision zone that could mark it another move up and definitely push it out of its current consolidation.
XRP price structure continues to be bullish
On Wednesday, January 14, Egrag Crypto he said The 3-day XRP chart shows obvious mighty signals. He stated that XRP remains structurally bullish despite long periods of consolidation recent bounce above $2 this year. According to the analyst, the price of XRP is currently compression in the descending canal as we approach the key decision zone between $2.30 and $2.40. He explained that this type of compression often occurs after a mighty move and can lead to more price expansion.
In his post on X Egrag Crypto, he shared the key trends he observed in the 3-day XRP chart. He revealed that 50 exponential moving average (EMA) has started to flatten, indicating that the selling pressure on XRP may be waning. At the same time, 200EMA continues to rise, confirming the analyst’s opinion that the macro trend for XRP is still bullish.
Egrag Crypto also highlighted that XRP is holding above the EMA cluster, which is a sign of structural strength rather than weakness. He emphasized that the upper limit of the descending channel coincides exactly with the areas of critical resistance at the level of $2.3, marked on the chart with a red line.
As these four changes occur simultaneously on the XRP chart, Egrag Crypto shared insights on their potential impact on the price. He stated that a neat 3-day close above $2.40 would likely confirm XRP breaking out of a descending channel. Based on the chart structure, he added that such a move could open the door to a continuation towards the $2.70 and $3.13 levels.
If XRP is rejected at channel resistance, Egrag Crypto stated that the price is likely to remain constrained in scope. He concluded his analysis by emphasizing that as long as XRP remains above $2.0, its bullish structure will remain intact, and this ongoing consolidation phase should be viewed as a period of compression preceding a potentially significant price expansion.
The chart signals a potentially deeper downward trend
On the Egrag Crypto chart, the lower boundary of the descending channel is touching a key support area, marked with a white line. This may mean that if XRP is not holding $2 or even falling below it could invalidate the analyst’s bullish thesis and trigger a decline towards the next support level at $1.65, representing a decline of approximately 17.5% from current prices.
If the price drops below $1.65, XRP may crash towards the last highlighted support level, just around $1.0, reflecting a roughly 50% decline from around $2.1.
Featured image created with Dall.E, chart from Tradingview.com
