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Market analyst EGRAG recently outlined multiple resistance levels that XRP needs to breach to secure a rally toward greater heights.
In his recent analysis, he focused on Channel B, a boundary that XRP has struggled to breach for years decisively. As pressure builds, a breakout above different resistance levels could drive XRP’s path to much higher prices, with $27 being the ultimate long-term target.
XRP Within Channel B
According to EGRAG, Channel B on the XRP monthly chart has acted as a major hurdle since 2017. Despite several attempts, including the substantial price rally in July 2023, XRP has been unable to close above this channel on a monthly time frame.
As market participants continue to lament XRP’s persistent underperformance, EGRAG suggests the Channel B boundary has been responsible for the persistent resistance, forcing price consolidations and retracements each time XRP approached it.
However, with XRP’s price movements now becoming increasingly squeezed within this range, market data suggests there is a buildup of pressure, and a breakout may be looming.
Resistance Levels
EGRAG identified major resistance levels to breach to secure a breakout. The first resistance level is at $0.6450, marking an immediate roadblock. Should XRP break through this level, it will face a more challenging test at $0.85, which acts as the midpoint of Channel B.
This level is important because it represents the halfway point of the range. A break above $0.85 would indicate that momentum has tilted from bearish to bullish, eventually leading to a test of the $1.10 level, which forms the upper boundary of Channel B.
EGRAG called the $1.10 resistance the final major roadblock before XRP can soar to greater heights. A monthly close above this level would signal a decisive breakout and could set the stage for the much-awaited bullish cycle.
Several market commentators have argued that a breach of the $1 level could mark the turning point for XRP. Interestingly, some pundits believe XRP is currently on the verge of crossing this mark, and investors might not see it trade below it again once this happens.
Long-Term XRP Targets
Once the $1.10 resistance breaks, EGRAG identifies $7.57, aligning with the 1.236 Fibonacci level, as the first target. The next target is $13.90 along Fib. 1.414. Finally, the 1.618 Fibonacci level, which points to a potential price target of $27.88, represents the ultimate target.
Meanwhile, as the bulls await a breakout, the immediate support for XRP rests on $0.48 with other levels at $0.38 and $0.28. Notably, as long as XRP remains above these supports and within Channel B, the likelihood of a breakout remains intact.
At press time, XRP changes hands at $0.547, having increased by 0.72% over the past 24 hours. The bulls have continued to battle the bears at the $0.55 level amid the recent rebound pull.