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$XRP is showing bearish momentum, with a top market analyst highlighting the crucial moving average it must hold to avoid further declines.
Notably, market technician Egrag Crypto recently spotlighted this development as $XRP joins a broader bearish trend. After rebounding from $1.82 two weeks ago to stabilize around $2.20 for most of last week, the cryptocurrency has now corrected by over 7% over the past two days, trading close to the $2 price mark.
$XRP Must Hold Critical EMA
Meanwhile, Egrag Crypto identified three possible scenarios for $XRP, using Fibonacci levels and moving averages. Notably, one outcome is an intense capitulation in $XRP if it closes below its 21-month exponential moving average (EMA).
He emphasized the need to stay above this indicator, suggesting that $XRP is done for in the event that it closes below the 21 EMA. “No sugar-coating it,” he said.
At the time of writing, the 21 EMA stands at $1.907, which is 6.38% away from the current market price of $2.037. A close below would set $XRP’s price on a path toward lower price targets, such as $1.55, as predicted by other analysts.
It bears mentioning that the analyst specifically mentioned a close below the 21 EMA. This indicates that while $XRP could fall below it, it would need to remain below for a monthly close to confirm the downside.
Bullish Possibilities Remain
Nonetheless, bullish possibilities remain for $XRP. Egrag Crypto shared what he described as bullish and super bullish scenarios for the coin using Fibonacci levels.
Specifically, he shared that a close above the 0.50 Fibonacci level highlighted in an accompanying chart would spell bullish momentum for $XRP. Notably, this aligns with the $2.60 price mark, which is 27% away from the current price. However, he noted that $XRP is not entirely free from a downside at this level.
$XRP Analysis/Egrag Crypto">
Meanwhile, he identified a super-bullish scenario in which $XRP closes above the 0.88 Fib. level at $3.40. A retest of the January high would set up a strong upside momentum for the cryptocurrency, potentially taking it to unprecedented prices.
$XRP Not Bearish in the Slightest
However, $XRP remains in bearish territory with recent retracements. Specifically, its over 5% downturn has wiped out $16.74 million in leveraged positions in the past 24 hours, with $16.13 million being long traders.
Yet, analysts remain resolute that $XRP could stun bears imminently. Charting Guy is among those with this sentiment, stating that $XRP is not bearish in the slightest. He cited the asset’s trend above the 2021 peak of around $1.97 as an indication of its bullishness.
This builds on his stance that $XRP was merely testing holders’ patience, and many are already folding. He suggested that $XRP is in an accumulation phase and that a breakout to $8 would follow.
