The cryptocurrency market has been very volatile over the past few weeks and XRP has been part of this trend. Crypto analyst Egrag Crypto believes that XRP is on the verge of a major breakout. While pointing out the recent analysis, Egrag pointed out that the XRP/USD pair is currently consolidating above the 0.236 Fibonacci retracement level. This suggests that a significant upside move could be imminent.
XRP has been on a rollercoaster of price action lately, fluctuating between highs and lows as the market reacts to various events. Despite the turbulence, the monthly time frame shows a promising pattern. According to TradingView, XRP is trading at around $0.472, having fallen back to the 0.236 Fibonacci level following a period of decline and stabilization.
Egrag is hinting at a period of natural consolidation. The monthly candlestick formation closing above the 0.236 Fibonacci retracement level is a strong indicator of potential bullish momentum. The next key target for the token, according to Egrag, is the 0.5 Fibonacci level at around $0.75122. If the token can convincingly overcome this level, it could lay the foundation for a much larger rally.
The ultimate target outlined in the analysis is the 1.618 Fibonacci extension level, which corresponds to a price of $6.44858. This ambitious target represents a significant increase from the current level and signals a potentially major bull run for the token.
Support levels determine the price of XRP
At the time of writing, the price of XRP is trading at around $0.472 and is fluctuating near a key support level of $0.468. Despite significant accumulation by large holders, these signals suggest a sideways trend for the altcoin.
This situation would restrict the cryptocurrency’s price movement to the range of $0.473-$0.516. The upper limit corresponds to the 23.6% Fibonacci retracement level, a known support during bear markets. Although the probability of breaking above this level is low, it could trigger a recovery in the token.
Conversely, if the support at $0.468 fails, XRP could test the next critical support at $0.460. A break below this level would undermine the bullish-neutral prediction and potentially lead to further declines.
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