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XRP is testing a crucial support level to determine the altcoin’s price movement in the coming weeks. The market is experiencing a state of uncertainty and anxiety after last week’s euphoria surrounding the Federal Reserve’s decision to cut interest rates.
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Despite this positive news, the recent price movements have worried traders who have been anticipating a massive rise for XRP this cycle.
The current situation has led to increased caution among investors, with many now looking for confirmation above or below the critical liquidity level. This hesitation has left some analysts trading forecasts based on the latest price action, adding to the uncertainty.
As XRP hovers near this pivot point, traders are closely watching whether it can break through resistance or whether it will pull back, which could indicate a shift in momentum. The next few days are crucial, as they will likely reveal whether the altcoin is able to maintain its upward trajectory or whether it will succumb to market pressures, impacting not only this token but potentially the broader altcoin market.
Analysts expect XRP to rise soon
XRP is currently facing serious risks as it hovers around the critical zone of $0.50-$0.55. In order for the price to confirm its upward continuation, it must settle above this level in the coming days. Analysts and investors are eagerly awaiting a signal that could lead to higher prices, especially as the broader market is experiencing uncertainty in the wake of recent volatility.
Senior analyst and investor Ali shared an optimistic view on XRP through Technical analysis published on X. In his analysis, Ali presents a chart illustrating the ruling pattern of XRP price movement since June 2022, which appears to be forming an upward parallel channel.
This channel indicates a potential upward trajectory, and if this pattern continues, XRP may move towards the middle or upper border of the channel, which is currently located at around $0.80 and $1.10, respectively. This move would represent a potential rally of 75% or more for XRP in the coming weeks.
However, this optimistic outlook is contingent on XRP being placed above a critical support level. If it fails to do so, it risks a deeper correction, which could dampen investor sentiment and halt any upward momentum.
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As traders keep a close eye on further price action and potential breakouts, the next few days will determine whether XRP can regain its upward trajectory or succumb to broader market pressures. Sentiment among analysts is cautiously optimistic, and the community is ready to take action based on XRP’s ability to navigate this pivot point.
Technical Analysis: Key Levels to Watch
XRP is trading at $0.53 after losing the 200 daily moving average (MA) at $0.54 and the 200 exponential moving average (EMA) at $0.55. The recent price action has raised concerns among traders as the price struggles to maintain upward momentum.
However, the price remains stable above the critical support level at $0.50, which is a key psychological threshold. If the price drops below this level, it could trigger significant selling pressure, leading to a deeper decline.
On the other hand, if the bulls can reclaim both the 200 EMA and the EMA, that would signal a potential shift in momentum. A successful break above $0.65 could pave the way for a significant rally, reigniting bullish sentiment in the market. This scenario depends on XRP being able to regain its footing and gather enough buying pressure to push through these critical resistance levels.
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While traders are closely monitoring the price action, the coming days will be crucial in determining whether the price is able to recover and put itself on a potential upward trajectory.
Featured image by Dall-E, chart from TradingView
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