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XRP might be heading toward a range-bound performance or a decline, according to prominent analyst EGRAG.
In his analysis, EGRAG called attention to four candlestick formations that signal looming bearishness. According to the analyst, these candlestick formations typically appear when an asset has reached a local top.
These candlesticks are the hanging man, the shooting star, the gravestone and the long-legged pattern. EGRAG cited XRP’s historical price movements, emphasizing that whenever any of these candlesticks formed on the monthly timeframe, they ushered in a price range or a price drop.
Interestingly, data from the analyst’s chart confirms that XRP has witnessed these patterns at least six times since 2014. Each time any of them occurred, the asset recorded a collapse. EGRAG asserted that XRP is about to form one of these patterns again this month.
XRP just began December, but EGRAG believes it might close the month with the formation of either a gravestone doji or a long-legged candlestick pattern. Should any of these candlesticks materialize, XRP could trade in a range or face a price collapse.
Pivotal XRP Price Levels
However, the analyst highlighted several significant price territories for XRP, each designated with a colored line. He pointed out that XRP’s ability to cross above the top two price territories would help the asset negate the looming bearish candlestick formation.
The first and lowest price territory is the red line, sitting at $0.4590, and serving as a pivotal support point for XRP. The second territory is the white line, which represents the December range and rests on $0.5470 to $0.7000.
Above the white line is the blue line, designated the macro resistance. The macro resistance point currently stands at $0.9230. Meanwhile, the last price territory is the green line, which EGRAG dubs the “macro GO-GO signal.” This territory rests within the $1.4150 price level.
XRP is changing hands at $0.6081 as of press time, up 0.46% today and down 1.96% over the last seven days. The asset is trying to retain the $0.61 position amid a 16% drop in 24-hour volume to $866,098,397.
According to EGRAG, XRP needs to clinch the macro resistance at the $0.9230 price territory to negate the bearish candle formation. Afterward, the asset should record a move above $1.4150. EGRAG noted that if this does not occur, then the current position would translate to a macro accumulation phase.