XRP, the prominent altcoin, finds itself at a critical juncture following a substantial 16.78% price decline in the past trading week, as per data from CoinMarketCap. The asset is currently consolidating, potentially gathering momentum for its next significant move.
Popular digital asset expert Egrag Crypto recently shared a technical analysis of the XRP market on X, presenting both bullish and bearish scenarios based on Fibonacci retracement levels and the 21-day exponential moving average (EMA). The analysis suggests that XRP is likely to range between $2.27 (Fib 0.382) and $2.45 (Fib 0.5), with the possibility of prices swinging within a wider boundary of $2.06 (Fib 0.236) – $2.65 (0.618).
Despite gaining 1.67% in the past day, a daily price close above the 21 EMA, currently at $2.70, is crucial for confirming any uptrend. Interestingly, a strong close above $2.80 (Fib 0.702) would indicate significant bullish pressure, suggesting that XRP buying momentum is sufficient to break higher resistance levels. Conversely, traders must be cautious of any price fall to $1.77, which, while not necessarily invalidating the current bullish structure, would point to rising bearish pressure.
At the time of writing, XRP trades at $2.49, up 4.43% in the last 24 hours. However, the asset’s trading volume has decreased by 56.85%, signaling a lack of market interest and uncertainty. That said, considering XRP’s overall bearish performance in the last seven days, the falling trading volume could also suggest reduced selling pressure, hinting at a potential reversal.
XRP investors remain generally bullish on the asset’s prospects, driven by several factors, most notably the potential approval of an XRP Spot ETF. The past week saw significant developments on this front, with the Chicago Board Options Exchange (CBOE) filing 19b-4 applications with the US Securities and Exchange Commission (SEC) to list and trade XRP spot ETFs proposed by WisdomTree, Bitwise, 21 Shares, and Canary. The SEC has a 45-day window, with potential extensions of up to 240 days, to assess and make a decision on these proposed ETFs once it acknowledges receipt of the applications.
The approval of an XRP Spot ETF could be a game-changer for the asset, potentially driving significant institutional investment and mainstream adoption. However, the SEC’s decision remains uncertain, given its history of rejecting similar applications for other cryptocurrencies like Bitcoin.
As the market awaits clarity on the ETF front, XRP traders should keep a close eye on key support and resistance levels, as well as the 21 EMA, to navigate the current consolidation phase. A decisive breakout above $2.80 could pave the way for a rally towards higher targets, while a breakdown below $1.77 might signal a bearish shift in sentiment.
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Tags: XRP, XRP Spot ETF, Technical Analysis, Fibonacci Retracement, 21 EMA, CBOE, SEC
Source: https://www.newsbtc.com/analysis/xrp/xrp-bull-targets-2-80-breakout-key-levels-to-consider/