Photo: dennizn / Shutterstock.com
XRP Stands at Important Crossroads #
At the time of writing, XRP is valued at $2.05, an important price level for Ripple’s token. Analyst CasiTrades identifies $2.04 as a crucial support level that XRP must maintain above for a bullish scenario to remain viable.
The reason $2.04 is such a significant price level is that it coincides with the 0.5 Fibonacci level, according to the analyst. Fibonacci is a series of ratios found throughout nature and also used in price charts to identify resistance and support. The 0.5 level is an essential Fibonacci level that typically provides strong support and resistance.
“Until XRP breaks through the resistance level at $2.41 and moves toward $2.65, the bullish scenario is not confirmed,” warns Casi.
However, another scenario remains possible where XRP loses $2.04 and declines toward $1.73 and $1.64. Another important Fibonacci level is located here, the analyst explains.
XRP Price Shows Similarities to 2024 #
Not all analysts use the Fibonacci sequence as leading indicators for resistance and support. ChartNerd shares on X that not $2.04, but $1.90 is an important support level. In his view, the price will test this level again soon.
ChartNerd is bullish and expects a short-term rise toward $2.30. For the long term, he speculates on a price rally. The current XRP chart shows many similarities to a year ago, after which XRP shot up following many sideways movements.
Favorable Conditions for XRP #
The price of XRP has fallen sharply in recent months and has faced strong selling pressure. Nevertheless, conditions for the token are not unfavorable. For instance, the coin broke its annual record just a few days ago with exceptionally high trading activity on the network.
On exchanges, XRP is also attracting many traditional investors. The coin’s exchange-traded funds have already recorded strong inflows since their launch a few weeks ago.