- XRP close above $2.83 would trigger a rally towards $4.20, further solidifying bullish momentum.
- A re-test of the Fib 0.888 support would offer potential for a rally but breaking it would offer further downside.
- Bitcoin tests $70K and bounces back down, XRP can follow and offer up a potential entry point.
XRP price action has come to a critical point with technical signals indicating the price is due for a strong move. The asset is still within the Blue Channel where it has reached equilibrium. A minor recovery from the lower border shows short-term strength but the ensuing move may chart its course.
Bullish Breakout: Can XRP Reach $4.20?
A strong bullish case would be made if XRP breaks through $2.83, which is also a resistance point that would initiate a rally. A breach of this point would validate macro strength and move prices towards $4.20 and beyond. A confirmed breach would cement the token’s structure and encourage investors to return to the market.
However, failure to hold above $2.83 could lead to short-term volatility, making the asset susceptible to a retest of key support levels before any huge upward move.
Will XRP Retest Support or Enter a Bear Trap?
Conversely, XRP can visit its Previous Daily Low (PDL) that aligns with the Fib 0.888 mark, which has been a historically strong area of support. If the token holds at this point of support, it can be indicative of strength and potential reversal.
If such support continue strong. Previous Daily High (PDH) of $2.40, Previous Weekly High (PWH) of $2.97, and Previous Monthly High of $3.07 will be crucial points. A continuous push beyond these levels may reinforce bullish momentum and validate XRP’s resistance to further downward pressure.”
Closing at or higher than these levels would provide assurance of the tooken’s structural strength. But if XRP goes below Fib 0.888 and PDL for three days in a row, bearish momentum may increase. This may push the price into a greater correction towards the Fib 0.786 mark and towards a potential Fair Value Gap fill.
Despite this, some analyst are of the opinion that such action would be a bear trap, especially if Bitcoin retests $70K before it bounces back. If such is the case, it may be a generation-long opportunity to buy instead of being the onset of a long downtrend.
With XRP standing at the crossroads of making a critical choice, market players are keenly observing price movement for guidance. Whether the token breaks through resistance or experiences a short-term pullback, the next few days may prove to be crucial in determining its future course.
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