Key insights:
XRP’s price needs to convert the 200-day SMA and the $2.70-$2.80 resistance into support to potentially rally beyond $3.00.
Analysts project a 57% chance of an upward breakout to $9.5-$27, while a 43% chance of a decline to $0.50 remains.
XRP (XRP) has dropped over 31% since hitting approximately $3.66 in July, including a 12.5% decline in the past week, bringing it down to nearly $2.50.
Will XRP maintain the $2.50 support and continue its upward trend?
XRP needs to convert the 200-day SMA to support
XRP must convert the $2.70-$2.80 resistance area into a support zone to aim for higher highs above $3.00.
However, the XRP/USD pair needs to close above the 200-day simple moving average (SMA) at $2.58 on the daily chart first.
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Historically, reclaiming this trend line has been followed by notable recoveries in XRP price, as evidenced in July (refer to the chart below).
Beyond that, the next critical level to monitor would be the $2.86-$2.96 range, home to the 50-day and 200-day SMA.
As reported by Cointelegraph, bulls need to push the price above the 20-day exponential moving average (EMA) at $2.72 to indicate a resurgence.
XRP shows a 57% potential for upward breakout
XRP charts indicate that a rebound from current levels is feasible, provided XRP/USD stays above $2.50, according to technical analyst Egrag Crypto.
He shared a chart illustrating that the XRP price is trading within a “descending broadening wedge which has a 57% chance of breaking to the upside.”
If this occurs, the altcoin could surge toward the projected target of the prevailing chart pattern at $9.50.
Egrag Crypto added:
“I believe we’re heading toward a minimum of $9, with an average target of $20 and a high-end target of $27 this cycle.”
The broadening wedge also carries a 43% likelihood of a breakdown that could drop as low as $0.50, offering a favorable “buy back” opportunity, the analyst mentioned.
Elliott wave analyst XForceGlobal also indicated that XRP is “still bullish on the macro.”
The chartist perceives the current price range as the “confirmation stage” before XRP embarks on its final bullish movement into wave 3 of the cycle.
“From a timing standpoint, it’s looking promising.”
Numerous other technical indicators on longer time frames, such as the oversold weekly Stochastic RSI, hint at a possible bullish recovery in XRP price.
This article does not constitute investment advice or recommendations. Every investment and trading move carries risks, and readers should conduct their own research when making a decision.
