XRP, at the time of writing, is trading near $2.50 after declining by over 30% since July, when it reached its yearly high of $3.66. The cryptocurrency had also dropped by 12.5% over the last week, which makes 2.4 a key support point. Analysts believe that holding this price range would either result in XRP going back to its upward trend or further depreciating.
To continue with recovery, XRP price needs to recapture the 200-day simple moving average (SMA) at $2.58. Anything above this would indicate a potential shift in the trend, suggesting the dominance of buyers. The trend of an upward price movement that exceeds the 200-day SMA has already been used to predict long-term XRP rallies.
The traders also observe resistance between $2.70, $2.80, and $3. A conversion of this zone into support may clear the way for the next target at $3.50. The 50-day and 200-day SMAs coincide within the range of $2.86-$ 2.96, which is a key level in validating a bullish reversal.
According to market analysts, such as Egrag Crypto, XRP is currently being traded in a descending broadening wedge, which has a 57% chance of a bullish breakout. Breaking out of this trend would bring XRP to the estimated measured price of $9.50.
Egrag Crypto projects several bullish targets; he also said, “I believe XRP can mimic the 2021 cycle percentage move, which would mean a top of $5.20”, with longer-term targets of $20 to $27 in case momentum continues to pick up through the cycle. Nevertheless, the chart pattern also suggests a likelihood of a downward break, which may push prices lower before they recover.
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Furthermore, Elliott wave analyst XForceGlobal presents a positive and robust macro picture of the XRP. The analyst considers the current trading range to be a confirmation period before the token can transition to the third phase of a larger bullish cycle.
The longer-term trends of technical indicators support this view. The weekly Stochastic RSI(Relative Strength Index) is in an oversold position, indicating that the selling pressure may be subsiding.
Provided that the momentum in buying is positive, XRP could be a medium-term reversal, which would enable the cryptocurrency to regain its lost position and continue its overall upward trend. The coming weeks are crucial to the formation of the XRP trend, as price stability above the $2.50 level would pave the way for a more robust stage of recovery.