- XRP shows signs of a bullish breakout, with key resistance levels identified by analyst Egrag.
- A close above $2.70 could signal a major upward move, potentially pushing XRP toward $5.
- XRP must maintain support at $2.00 and $1.63 to avoid further downside risk.
XRP is showing signs of a potential bullish breakout despite current volatility. In a post on X, trader/analyst Egrag identified key resistance levels that could accelerate XRP toward $5 if the cryptocurrency holds above critical support levels.
Key Resistance Levels to Watch
According to the analyst, XRP is in a consolidation phase, with several key resistance levels to monitor. A close above $2.24 (near the 21-day EMA) would be the first sign of renewed strength.
Beyond that, the $2.30 level (Fibonacci 0.382 retracement) presents the next hurdle. Clearing this could open the path towards $2.47 (Fibonacci 0.5 level).
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The Ultimate Breakout Level Target
The most crucial resistance, according to Egrag, is $2.70, where a key trend line intersects the Fibonacci 0.618 retracement. A decisive move above this threshold could trigger a significant bullish run towards new all-time highs.
According to him, this level may possibly push XRP to target new all-time highs (ATH). Specifically, he cited that the Fibonacci 1.618 level could see XRP rally into the $5 range.
However, for this bullish scenario to play out, XRP must hold key support levels at $2.00 and $1.63. Failure to maintain these supports could lead to further downside movement. XRP is currently trading at $2.09, a 2.3% rise in the past day, reducing its weekly loss to 6.2%.
April Could Be Pivotal for XRP
Earlier analysis by Egrag suggests that April could prove to be a pivotal month for XRP. The analyst anticipates significant price swings before a final breakout to new highs. He predicts that XRP will likely test lower and higher ranges before experiencing a decisive upward move.
Related: Coinbase Moves to Offer XRP Futures Trading Through Self-Certification
The chart accompanying the analysis shows red arrows and boxes indicating potential downside testing zones, suggesting that XRP could dip to a new low between $1.90 and $1.79. However, the green zones represent potential support for the altcoin, with the decline expected to be temporary.
Once the downward wick completes, XRP is expected to retest higher resistance levels between $2.80 and $3.00. This zone will serve as a critical test for the asset, with buying pressure determining whether the cryptocurrency moves higher or continues consolidating.
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