thecryptobasic.com
After consecutive days of bearish movement, XRP is swiftly recovering, with an analyst identifying favorable entry points for XRP’s potential $11 rally.
At press time, XRP is hovering around $2.31, posting a modest 0.29% 24-hour gain. However, the current value reflects a 4.39% rebound from XRP’s latest weekly low of $2.2129.
This recovery comes as Bitcoin reclaimed $95K today after crashing to $91K earlier in the week. The momentum is spilling over to altcoins like XRP.
Amid this, analyst Ali Martinez took to X to project that XRP could rally above $10. However, his commentary suggests he does not expect the run to $10 to occur during the ongoing market recovery.
Two Favorable XRP Entry Points
Martinez noted that XRP enthusiasts still have a favorable entry point for the token at $2.05. This sentiment suggests a dip from the current $2.31 level is still a possibility.
Notably, the $2.05 price point is inspired by the lower side of the rising trendline of the pennant formation unfolding on the XRP 12-hour chart.
Additionally, he highlighted that those who miss loading up on XRP at this projected low could have another opportunity at the $2.50 level. This price coincides with a breakout from the pennant formation.
Martinez concluded that regardless of which entry point one chooses, a price above $10 remains a feasible destination for XRP. This aims to reassure current holders not to be concerned with short-term price fluctuations.
Notably, attaining $10 from the current level would represent a 333% upside for current XRP holders.
How XRP Will Journey to $11
Meanwhile, XRP’s journey above $10 is not expected to be a smooth ride, as Martinez’s charts highlight several ups and downs aligned with key Fibonacci levels.
First, upon a break to the upside, XRP would need to overcome the $3 roadblock. Successfully breaking this seven-year resistance would generate enough explosive momentum to push XRP to $4.70 shortly after. This price aligns with the 1.272 Fibonacci level.
However, a retest of $3.70 will follow the run to $4.70. A recovery from this level would then drive XRP into the $6 price range.
The pattern of post-breakout retests of earlier lows and rebounds will continue until XRP reaches the $11.80 price. This unprecedented value aligns with the 1.786 Fibonacci level.
XRP Downside Risk
While the upside potential of XRP is promising, significant downside risk remains. Specifically, concerned community member Amir Kani sought Martinez’s view on the likelihood of XRP breaking down instead of breaking out from the triangle formation.
The analyst acknowledged the possibility and noted that $1.50 would be the target to watch, as this aligns with the 0.618 Fibonacci level.
May be the .618 fib at $1.5
— Ali (@ali_charts) January 9, 2025