Despite XRP’s continued decline and its struggle to regain the $2 level, one analyst believes that the commodity is approaching a critical technological point that could determine the next rally. Chart breakdown from crypto analyst Egrag Crypto exhibitions that if XRP retraces key levels above the 200-week EMA, it could strengthen momentum and pave the way towards $8.5.
XRP 200 EMA And $1.55 Becomes Rapid Battleground
The proposed convention is based on XRPs working with the 200-week EMAa widely used indicator used to assess long-term market momentum. In his accompanying chart, XRP is trying to move above this moving average while at the same time approaching a horizontal resistance area around $1.55.
According to him, this area represents the first logical test of bullish power. A confirmed weekly close above both the 200 EMA and the $1.55 level would indicate that buyers are beginning to regain short-term control of the market. Such movements can show increasing pressure on the upside and suggest that recent downward pressure may be weakening.
Despite these potential changes, the broad framework of the technology remains the same. Analyst notes that XRP still trading within a descending channel that has dominated its recent price action. As long as the stock is within this formation, the major trend continues to indicate a correction phase instead of a confirmed breakout.
Because of this, reaching $1.55 shows initial strength, but does not make it ineffective broad bearish structure. A further trend reversal will be confirmed only after a break above the upper boundary of the channel.
A Break Above $2.20 Could Start a Race Towards $8.5
Beyond the first test of resistance, the analyst points to a high confirmation level that may initiate an aggressive bullish phase. The chart points to a weekly close above around $2.20 as the next structural milestone for XRP.
Movement above this level will set the price above the key resistance within the descending channel and may indicate the beginning of a broad expansion phase. In the chart representation, such a break coincides with the upper levels of the Fibonacci retracement, with the long-term trend extending to the $8.5 region.
However, the chart also spells a bad scenario if the $1.55 resistance fails to hold. Rejection at that level is possible cause a sweep of low liquidity areaswhere the analyst points to $1.26 as the first possible downside target.
If the weakness continues, projections indicate a deeper move to the $0.95 to $0.85 region. This place appears on the chart as wide support area where the price can stabilize before trying to make a rally.
At the moment, the direction of XRP depends on its interaction with the 200 EMA and the resistance level of $1.55, which the analyst identifies as an important starting point that determines whether the market builds short-term rally strength or continues its correction structure.
The featured image was created with Dall.E, a chart from Tradingview.com
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