XRP Positioned For Major Structure Shift As Price | Crypto News
After recovering from last week’s lows, XRP has been shifting sideways, hovering between $1.40 and $1.45 during the past 4 days. As the price makes an attempt to maintain its local vary lows, a market observer has affirmed that the cryptocurrency might be making ready for a potential recovery if its important degree holds.
XRP At Critical Inflection Point
On Tuesday, crypto analyst ChartNerd highlighted XRP’s efficiency over the past six months, suggesting that the altcoin might be ‘Positioned for a Major Bullish Structure Shift.”
He explained that the cryptocurrency has seen “6 months of downside with virtually no relief,” while exhibiting key indicators, such as the MACD and RSI reaching historic oversold ranges.
Moreover, the analyst highlighted the simultaneous retests of the 50-Month Exponential Moving Average (EMA), a prior eight-year resistance line, and the Fibonacci demand zone. “This marks the first 50EMA backtest since November 2024, and doing so, we have a wick marked on the 0.618/0.5 FIB demand zone. A popular reversal pocket,” he famous.
In a video analysis, ChartNerd also emphasised that XRP is presently at a “critical inflection point,” pointing to its 200-week EMA, a degree that had not been examined since 2024 until now, and where the price is presently sitting.
The analyst detailed that “this is one of the most important times for XRP because if it holds the line above this moving average, this could set the pace for new all-time highs and continuation of the trend to higher targets.”
For his bullish case, he identified XRP’s 2023-2024 efficiency, when it consolidated above the indicator and held it as help for over a 12 months, main to the breakout in November 2024.
To him, the important half is to “hold the 200W EMA, defend it, and create a higher low base. This is where XRP could push to new all-time highs if it respects this long-term structure moving average.”
Analyst Warns Of New 50% Correction
The analyst also shared a bearish outlook for XRP, noting that shedding the 200W EMA in the weekly timeframe and, more importantly, confirming it as resistance might signal a major drop forward.
Per ChartNerd’s analysis, if the altcoin begins closing below the 200W EMA, situated around the $1.41 space, it dangers descending toward the $0.70 mark. This is where the earlier local highs that haven’t been retested since the late 2024 breakout are.
He explained that in 2022, after reaching a local high of around $1.97, XRP “came back down for a retest on its 200-week EMA. It then placed a lower high, lost the 200-week, and corrected even further to its bear market lows.”
In past cycles, when XRP failed to maintain this important inflection degree, it entered a deep corrective period, crashing by around 50% toward the bear market backside.
“So technically speaking, if XRP lost right now, for example, the 200-week EMA and we crashed another sort of 49% roughly, you’re bringing XRP back down to 70, which is again those highs that I spoke about in the past that we haven’t actually back tested for support since breaking out,” he warned.
As of this writing, XRP trades at $1.39, a 3% decline on the daily timeframe.
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