XRP Faces Potential Liquidity Sweep Before Significant Upside, Analyst Suggests
XRP’s price has experienced considerable downward pressure in recent days, mirroring broader market trends. The cryptocurrency has retreated to a critical support zone around $1.10, with sellers maintaining control of short-term momentum. This decline has positioned XRP squarely within a significant area on its long-term monthly candlestick chart.
XRP in a “Face-Melting Phase”
Technical analysis by crypto analyst EGRAG CRYPTO indicates that XRP may undergo one final liquidity sweep before embarking on a substantial rally potentially exceeding $10. EGRAG’s assessment is based on XRP’s behavior on higher timeframes, specifically around the 50-month and 100-month exponential moving averages (EMAs).
According to the analyst, XRP has historically followed a recurring pattern after decisively losing the 50 EMA. This breakdown is typically characterized by weak momentum, emotional selling, and a concluding liquidity sweep towards the 100 EMA before a new rally commences.
The current monthly candle has opened below the 50 EMA, placing XRP’s price action in a precarious position. This scenario, described as a “face-melting phase,” suggests a possibility of further decline towards the 100 EMA as the market continues to seek its macro bottom. EGRAG’s projected path anticipates further downside, with charts indicating a potential drop below $1.
Building a Position Amidst Uncertainty
Intriguingly, while anticipating further declines, EGRAG CRYPTO is actively accumulating XRP. Instead of waiting for a confirmed reversal, the analyst is building a position across a range of entry prices, including $1.09, $0.92, $0.85, and even $0.70, treating each level as a potential probability zone.
Projections Point to Over $10
Beyond the immediate downside potential, EGRAG’s analysis highlights significant upside targets. The projected recovery path suggests XRP could break above its current cycle high of $3.65. The charts indicate potential upside levels at $9, $13, $17, $20, and $27.
EGRAG emphasizes that the precise bottom may become less critical if XRP ultimately reaches these projected bullish targets. The analyst argues that effective risk management is more crucial than pinpointing the exact bottom. His strategy illustrates that entering at lower prices like $1.09, $0.92, $0.85, or $0.70 would yield substantial returns if XRP reaches targets of $7, $8, $13, or even mid-double-digit figures.
At the time of reporting, XRP was trading at $1.14, marking a 12% decrease over the past seven days. A move from the current price to $10 would necessitate a rally of approximately 777%. Reaching $13 would represent a gain of over 1,040%, while a surge to the $27 level on the chart would require XRP to increase by more than 2,260% from its current trading range.
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