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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