Market analyst Egrag Crypto said the XRP price structure remains largely bullish despite the cryptocurrency’s recent struggles to break above $2. The analyst has presented a chart analysis showing XRP slowly approaching a key decision zone that could determine its next upward move and push it firmly out of its current consolidation.
XRP Price Structure Still Bullish
On Wednesday, January 14, Egrag Crypto said the XRP 3-day chart shows obvious, strong signals. He stated that XRP remains structurally bullish despite experiencing long periods of consolidation following its last rebound above $2 this year. According to the analyst, XRP’s price is currently compressing within a descending channel as it moves closer to a key decision zone between $2.30 and $2.40. He explained that this type of compression often appears after a strong move and can lead to a larger price expansion.
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In his post on X, Egrag Crypto shared key trends he observed on XRP’s 3-day chart. He revealed that the 50 Exponential Moving Average (EMA) has begun to flatten, indicating that selling pressure for XRP may be easing. At the same time, the 200 EMA continues to move higher, supporting the analyst’s opinion that the macro trend for XRP is still bullish.
Egrag Crypto also emphasized that XRP is holding above the EMA cluster, a sign of structural strength rather than weakness. He highlighted that the upper boundary of the descending channel aligns precisely with the critical resistance areas at $2.3, marked by a red line on the chart.
As these four developments occur simultaneously on the XRP chart, Egrag Crypto shared insights into their potential price impacts. He stated that a clean 3-day close above $2.40 would likely confirm XRP’s breakout from the descending channel. Based on the chart structure, he added that such a move could open the door for a continuation toward the $2.70 and $3.13 levels.
If XRP is rejected at the channel’s resistance, Egrag Crypto has said that the price would likely remain range-bound. He concluded his analysis by emphasizing that as long as XRP continues trading above $2.0, its bullish structure will remain intact, and this ongoing consolidation phase should be seen as a period of compression ahead of a potential major price expansion.
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Chart Signals Potentially Deeper Downtrend
In Egrag Crypto’s chart, the lower boundary of the descending channel touches a key support area, marked by a white line. This could mean that if XRP fails to hold $2 and even drops below it, it could invalidate the analyst’s bullish thesis and trigger a decline toward the next support level at $1.65, representing a roughly 17.5% drop from current prices.
If price falls further below $1.65, XRP could crash toward the last highlighted support level just around $1.0, reflecting an approximately 50% decrease from around $2.1.
Featured image created with Dall.E, chart from Tradingview.com
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