XRP, the native token of Ripple, experienced a significant price decline last week, losing 16.78% of its market value, according to CoinMarketCap. However, the altcoin is currently consolidating, potentially gathering momentum for its next breakout.
Egrag Crypto, a popular digital asset expert, shared a technical analysis of XRP on X, outlining both bullish and bearish scenarios. The analysis utilized Fibonacci retracement levels to identify potential support and resistance levels, along with the 21-day exponential moving average to smooth out price data and emphasize recent price trends.
Egrag Crypto predicts XRP to range between $2.27 and $2.45, with potential for wider fluctuations between $2.06 and $2.65. XRP gained 1.67% in the past day, but a daily price close above the 21 EMA, currently at $2.70, is crucial for confirming an uptrend. A strong close above $2.80 would indicate significant bullish pressure, potentially breaking higher resistance levels. Conversely, a fall to $1.77 could signal rising bearish pressure, although it may not invalidate the current bullish structure.
At the time of writing, XRP trades at $2.49, up 4.43% in the last 24 hours. However, trading volume has decreased by 56.85%, indicating a lack of interest and uncertainty in the market. This decline in volume could also suggest reduced selling pressure, potentially hinting at a reversal.
XRP investors remain bullish, driven by the potential of an XRP Spot ETF. Last week, the Chicago Board Options Exchange filed 19b-4 applications with the US Securities and Exchange Commission (SEC) seeking 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 the proposed ETFs after acknowledging receipt of the applications.