An analyst has now detailed conditions for XRP to reach $8, noting the levels to keep and eye on.
A well-known market analyst has pinpointed key levels for XRP to monitor across daily, weekly, and monthly timeframes, establishing conditions necessary for the cryptocurrency’s upward movement.
In the latest update on XRP’s price action, this thorough analysis comes at a crucial time as XRP enters a significant consolidation phase.
Following a sharp rise to $2.90 on December 3, the asset has since retreated, oscillating between $2.00 and $2.60 as traders await the next significant price movement.
Monthly and Weekly Insights
The analyst, EGRAG, begins by emphasizing the importance of the monthly timeframe.
He highlights that a bullish close for December is critical, as it will set the tone for January’s performance.
For XRP to sustain its upward momentum, the monthly candle must avoid bearish formations like the Hanging Man or Shooting Star.
EGRAG identifies $2.20 as a crucial support level; a close below this could signal negative trends, although short-term fluctuations below this level may not be significant.
If XRP maintains its position above $2.20 entering January, it could pave the way for a bullish rally.
On the weekly chart, EGRAG notes that $2.44 is a pivotal level to watch.
While the previous week showed bullish momentum, the current week’s opening below last week’s close raises some concerns.
He suggests that if XRP can close the week above $2.44, it could ignite a rally into January and February of 2025.
Maintaining a position above $2 on the weekly chart is also vital to preserve the bullish structure and prevent further declines.
Analysis of Shorter Timeframes
EGRAG also examines the 3-day chart, illustrating a struggle between buyers and sellers.
After a downward push from the December peak, bulls have successfully defended the $2 mark, keeping XRP above essential support.
He identifies the range between $2.17 and $2.53 as the current battleground.
A decisive closing above this range would confirm bullish control and signal the start of an upward trend.
On the daily timeframe, EGRAG remains optimistic, noting that XRP has been trading within a defined range for two weeks.
If this bullish trend continues, he forecasts potential targets between $7.50 and $8.10 for XRP.
However, he believes that a significant move in Bitcoin, potentially reaching $120,000 to $130,000, could serve as the catalyst for XRP’s breakout.
Currently, Bitcoin trades at approximately $100,848.11.
EGRAG advises patience, suggesting that a larger consolidation phase could lead to a more substantial breakout.
Further Breakdown of Shorter Charts
In addition, EGRAG analyzes the 8-hour and 2-hour charts.
The 8-hour chart shows a bullish setup according to the ADX indicator, indicating that XRP may be in the early stages of Wave 1, signaling the start of a new upward wave.
He predicts that subsequent waves could result in significant price increases.
The 2-hour chart reinforces this outlook, as XRP sits at the lower Bollinger Band, with a squeeze formation hinting at an imminent breakout.
This setup suggests that XRP may soon embark on its next upward leg.
A Broader Perspective
Another analyst, CrediBULL, shares a bullish perspective on XRP in a separate commentary.
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 poised for a powerful Wave 3 rally, potentially driving the price to $8.
Following this, a corrective Wave 4 could form a triangle pattern, with a breakout from Wave 5 potentially soaring above $22.
CrediBULL identifies key support at $2.17 and resistance levels at $2.52 and $2.90.
Maintaining a price above $2 is crucial for sustaining the bullish structure, while breaking above $2.90 would indicate a continuation of the upward trend.
As of now, XRP is trading at $2.34.
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