XRP At ‘Critical Inflection Point’: Analyst Signals Major Expansion If This Level Holds

Overview

XRP is currently at a pivotal moment as it attempts to break through crucial resistance levels. An analyst has observed that the altcoin is exhibiting positive behavior, which could lead to significant price movements if specific levels are maintained.

Current Market Analysis

As of recent trading activity, XRP has been fluctuating in the price range of $1.85 to $2.00. It experienced a notable intraday increase of 4.6% after retesting the $1.90 area, indicating a potential upward momentum. However, the altcoin has struggled to maintain its position above the upper boundary of this range.

The analyst known as ChartNerd has highlighted a key reversal pattern that may suggest a substantial price expansion is imminent. According to ChartNerd, XRP is at a “critical inflection point” as it retests a significant macro support zone. This situation is characterized by a running flat ABC correction formation, which is described as a sophisticated structure. In this context, the failure of the ‘C’ wave to breach previous lows is seen as a sign of underlying bullish strength.

For over 400 days, XRP has demonstrated a similar structural pattern, which could indicate an impending breakout. If the price action resolves positively, it would signify a transition from a long-term base into a new primary uptrend. ChartNerd has pointed out that the repeating wave counts in XRP’s price action are evident and that as long as the macro support around the $1.80 area holds, the bullish scenario remains intact.

The analyst has also mentioned the possibility of a scenario where XRP might dip below this major support level before experiencing a V-shaped recovery. However, there is caution surrounding this approach; losing the $1.80 support level would be detrimental to the pattern’s validity. The analyst notes that if XRP closes below this support, retests it as resistance, and subsequently drops to lower levels, it would invalidate the bullish outlook.

Importance of Macro Support

The $1.80 level has been highlighted as a critical macro support zone that XRP has been defending for over a year. ChartNerd believes that maintaining this support could lead to a rally toward new all-time highs. He notes that this area serves as a macro accumulation zone, with two major levels of descending resistance above it.

The analyst refers to a previous instance where breaking through a multi-month descending resistance led to a significant rally. Currently, XRP faces similar descending resistance, and ChartNerd emphasizes that overcoming this barrier would likely set the stage for further expansion.

Additionally, there is a bullish reversal structure forming below the key $2.70 resistance level. XRP has recently broken out of a three-month falling wedge pattern, and the price is now retesting the breakout level as support. The analyst concludes that if XRP can defend the $1.80 support level, it may be poised for major expansion toward the $2.70 target and possibly beyond.

From author

The ongoing analysis of XRP’s price action illustrates the importance of key support and resistance levels in determining future market behavior. Market participants will be closely watching these developments, especially the critical $1.80 support, to gauge the potential for a significant upward trend.

Impact on the crypto market

• XRP’s performance could influence investor sentiment in the broader cryptocurrency market.
• A successful defense of the $1.80 support level may lead to increased buying interest.
• If XRP breaks through the descending resistance, it could trigger a wave of buying across other altcoins.
• The formation of bullish patterns in XRP may attract more attention from traders and analysts, potentially boosting market activity.
• The implications of XRP’s price action could serve as a benchmark for assessing the strength of the altcoin market overall.