Market analyst Egrag Crypto maintains that XRP’s price structure is still bullish, even though the cryptocurrency has recently struggled to rise above $2. The analyst’s chart shows XRP slowly nearing a critical decision zone, which could determine its next upward move and help it break out of its current consolidation phase.
In a post on Wednesday, January 14, Egrag Crypto pointed to clear, strong signals on XRP’s 3-day chart. He noted that despite long periods of consolidation after its last rebound above $2 this year, XRP’s structure remains bullish. The price is currently compressing within a descending channel as it approaches a key zone between $2.30 and $2.40. According to the analyst, this kind of compression often follows a strong price move and can lead to a significant expansion.
In his analysis shared on X, Egrag highlighted several trends. The 50-day Exponential Moving Average (EMA) is starting to flatten, suggesting that selling pressure on XRP may be easing. Meanwhile, the 200-day EMA continues to rise, supporting the view that XRP’s broader trend is still upward.
He also emphasized that XRP is holding above the cluster of EMAs, indicating structural strength rather than weakness. The upper boundary of the descending channel aligns with a critical resistance area at $2.30, marked by a red line on the chart.
Considering these four developments together, Egrag shared their potential impact. A clear 3-day close above $2.40 would likely confirm a breakout from the descending channel. Based on the chart structure, such a move could open the path toward $2.70 and $3.13. If XRP faces rejection at the channel’s resistance, the price would likely remain range-bound.
The analyst concluded that as long as XRP continues trading above $2.0, its bullish structure remains intact. He views the current consolidation as a period of compression before a potential major price expansion.
In Egrag’s chart, the lower boundary of the descending channel touches a key support area marked by a white line. This suggests that if XRP fails to hold $2 and falls below it, the bullish outlook could be invalidated, potentially triggering a decline toward the next support level at $1.65—a drop of roughly 17.5% from current prices.
A further drop below $1.65 could see XRP fall toward the last highlighted support level around $1.0, representing an approximate 50% decrease from around $2.1.
Frequently Asked Questions
Of course Here is a list of FAQs about XRPs current market situation designed to be clear and helpful for all levels of interest
Beginner Definition Questions
1 What does it mean that XRP is at a critical decision point
This is a technical analysis term It means the price is approaching a key level on its chart where it must either break through strongly to continue upward or get rejected and potentially fall back
2 What is bullish market structure
A bullish structure means the overall trend of higher highs and higher lows is still intact on longerterm charts Even if the price dips in the short term the foundational trend is still pointing up
3 Isnt XRPs price tied to Ripple the company
While closely associated XRP is a digital asset that exists independently on its decentralized ledger the XRP Ledger Ripple is a major holder and user of XRP Positive developments for Ripple can boost XRPs price but they are separate entities
Market Analysis Questions
4 Why is the overall structure still bullish despite recent price moves
Key reasons include XRP decisively winning its major SEC lawsuit in 2023 increased adoption by banks for crossborder payments and the fact that its holding above crucial longterm support levels established after that legal victory
5 What is the critical level everyone is watching
Analysts are closely watching the 055 060 zone This area has acted as both strong support and resistance A sustained break and close above 065 could signal the next major leg up while a fall below 050 could indicate a deeper correction
6 What could cause XRP to break out to the upside
Catalysts include a final resolution of the SEC case a major new bank or financial institution announcing they will use XRP for liquidity or a broader altcoin season where money flows from Bitcoin into other cryptocurrencies
7 What are the main risks or things that could push the price down
Key risks are a negative development in the ongoing SEC case a prolonged downturn in the overall crypto market