An analyst has now outlined the conditions for XRP to reach $8, noting the levels to watch. A well-known market analyst has identified key levels for XRP to monitor across daily, weekly, and monthly time frames, establishing the necessary conditions for the cryptocurrency's bullish trend.
In the latest update on XRP's price movements, this in-depth analysis comes at a crucial time as XRP enters a significant consolidation phase.
After a strong increase to $2.90 on December 3rd, the asset's price has since retraced, fluctuating between $2.00 and $2.60 as traders await the next significant price movement.
Monthly and weekly detailed information
Analyst EGRAG begins by emphasizing the importance of the monthly time frame.
He emphasizes that the closing price increase in December is crucial as it will shape the trend for January.
For XRP to maintain its upward momentum, the monthly candles must avoid bearish patterns like Hanging Man or Shooting Star.
EGRAG identifies $2.20 as a crucial support level; a close below this could signal a negative trend, although short-term movements below this level may not be significant.
If XRP can maintain above $2.20 as it enters January, this could pave the way for a bullish rally.
On the weekly chart, EGRAG notes that $2.44 is an important level to watch.
While last week showed bullish momentum, the current week's opening is lower than the previous week's close, raising some concerns.
He believes that if XRP can close the week above $2.44, it may trigger a bullish rally in January and February 2025.
Maintaining a position above $2 on the weekly chart is also crucial to sustaining the bullish structure and preventing further decline.
Shorter time frame analysis
EGRAG also considers the 3-day chart, illustrating the struggle between buyers and sellers.
After the drop from the peak in December, buyers have successfully defended the $2 mark, keeping XRP above the necessary support level.
He identifies the range from $2.17 to $2.53 as the current battleground.
A strong close above this range will confirm bullish momentum and signal the beginning of an uptrend.
On the daily time frame, EGRAG remains optimistic noting that XRP has traded within a defined range for two weeks.
If this bullish trend continues, he predicts a potential target for XRP to be between $7.50 and $8.10.
However, he believes that a significant move by Bitcoin, potentially reaching $120,000 to $130,000, could act as a catalyst for XRP's breakout.
Currently, Bitcoin is trading at approximately $100,848.11.
EGRAG advises patience, suggesting that a larger consolidation phase could lead to a more significant breakout.
A deeper analysis of shorter charts
Additionally, EGRAG analyzes the 8-hour and 2-hour charts.
The 8-hour chart shows a bullish trend according to the ADX indicator, suggesting XRP may be in the early stages of Wave 1, signaling the start of a new bullish wave.
He predicts that the next waves could lead to significant price increases.
The 2-hour chart reinforces this outlook as XRP sits at the lower Bollinger Band, with a contracting pattern signaling an impending breakout.
This setup indicates that XRP may soon begin its next bullish rally.
A Broader Perspective
Another analyst, CrediBULL, shares an optimistic view on XRP in a separate comment.
He encourages stakeholders to focus on the long-term trajectory rather than short-term price fluctuations.
According to his analysis, XRP has just completed Wave 2 and is preparing for a strong bullish Wave 3, potentially pushing the price to $8.
Subsequently, Wave 4 may form a triangular pattern, with a breakout from Wave 5 likely to soar above $22.
CrediBULL identifies key support at $2.17 and resistance at $2.52 and $2.90.
Maintaining the price above $2 is crucial to sustaining the bullish structure, while breaking above $2.90 will indicate a continuation of the upward trend.
As of now, XRP is trading at $2.34.
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