Key takeaways:
For XRP price to rally above $3.00, it must convert the 200-day SMA and the $2.70-$2.80 resistance into support.
Analysts estimate a 57% likelihood of an upward breakout to the $9.5-$27 range, while a 43% chance of a decline to $0.50 exists.
XRP (XRP) has dropped over 31% since its peak near $3.66 in July, including a 12.5% decline in the last week, bringing it down to around $2.50.
Will XRP maintain $2.50 as support and keep rallying from there?
XRP needs to convert the 200-day SMA into support
XRP must turn the $2.70-$2.80 resistance zone into a support zone to aim for higher highs above $3.00.
Initially, the XRP/USD pair needs to close above the 200-day simple moving average (SMA) at $2.58 on the daily chart.
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Historically, reclaiming this trend line has been followed by significant recoveries in XRP price, as observed in July (refer to the chart below).
Next, focus on the $2.86-$2.96 range, where both the 50-day and 200-day SMAs currently are positioned.
As reported by Cointelegraph, bulls need to push the price above the 20-day exponential moving average (EMA) at $2.72 to indicate a recovery.
XRP has a 57% chance of an upward breakout
According to technical analyst Egrag Crypto, XRP charts indicate a possible rebound from current levels, as long as XRP/USD does not dip below $2.50.
He shared a chart showing that XRP was trading within a “descending broadening wedge with a 57% chance of breaking upwards.”
Should this occur, the altcoin could ascend toward the chart pattern’s measured target of $9.50.
Egrag Crypto elaborated:
“I believe we’re headed towards a minimum of $9, with an average target of $20 and a maximum target of $27 this cycle.”
The broadening wedge also has a 43% chance of a breakdown, potentially falling to $0.50, which could provide a strong “buy back” opportunity, the analyst noted.
Elliott wave analyst XForceGlobal also stated that XRP remains “bullish on the macro.”
According to the chartist, the current price range represents the “confirmation stage” prior to XRP’s final bullish push into wave 3 of the cycle.
“From a timing perspective, it’s looking great.”
Multiple other technical indicators on higher time frames, including the oversold weekly Stochastic RSI, suggest a potential bullish reversal for XRP price.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
