Is the price of XRP a concern? Technical Analysis suggests a positive trend.

Despite recent volatility, many reputable analysts still believe that the technical structure of Ripple (XRP) is in a downtrend. They particularly emphasize several key price levels that play a crucial role in confirming market trends. Chart analysis over the past 5 days further reinforces that argument, indicating that the current technical context still maintains a positive structure.

Analysts remain cautiously optimistic about XRP prices

In the context of escalating geopolitical tensions – particularly due to U.S. airstrikes on Iran's infrastructure, the price of XRP has fallen nearly 5% in the past week. From a level of around $2.2, this altcoin plummeted to nearly $1.9 before a slight recovery and stabilization around the $2.14 mark.

Veteran trader Peter Brandt has pointed out a potential head and shoulders pattern (H&S) forming on the XRP chart – a technical pattern often regarded as a reversal signal from an uptrend to a downtrend if a key support level is breached.

However, Brandt still holds a cautious view, emphasizing that it cannot be confirmed that a downtrend is in place if XRP can maintain the key support area around 1.8 dollars.

xrpSource: Peter BrandtA weekly candle closing below the important support level will be a confirmation signal of the bearish scenario for XRP. However, the outlook is not entirely pessimistic. Analyst EGRAG CRYPTO has presented a detailed bullish argument based on a series of technical indicators.

In this context, the Gaussian Channel – an indicator that measures volatility commonly used to assess trend strength and reversal potential plays a key role. According to EGRAG, it is essential for XRP's price to maintain above the lower boundary of the channel, currently around $1.75, to avoid deep downward pressure and preserve the bullish structure.

In addition, the 21-week EMA ( currently at $2.33 ) is also regarded as an important threshold in determining the macro trend. If XRP can close steadily above this EMA line, it will reflect the bullish momentum being reinforced.

Further on, the resistance level of $2.65 is considered a decisive barrier. A successful breakout of this area will strongly confirm the long-term uptrend.

In addition, EGRAG also uses the Elliott wave method - a famous technical analysis tool that helps identify repeating patterns in price behavior in order to provide potential target price levels for the next upward movement.

Analysis of XRP price using Elliott wave indicators | Source: EGRAGUsing the Elliott wave ratios, the analyst predicts XRP could reach between 9 to 10 dollars if this altcoin successfully completes the anticipated 5th wave, provided it continues to hold the current support levels.

Short-term technical analysis supports caution

XRP is facing significant selling pressure as the price falls sharply to the level of $1.9, confirmed by the Accumulation/Distribution line (A/D) falling significantly.

The A/D line measures the pressure of accumulated buying and selling, and its decline indicates higher trading volume when prices fall, reflecting strong selling activity.

When the price of XRP reaches the support level near $1.9, the A/D line stabilizes and begins to rise slightly during the recovery process, indicating new buying activity.

xrpXRP accumulation/distribution chart over the last 5 days | Source: TradingViewHowever, the accumulation in this rally has not completely nullified the previous distribution, indicating that caution is still needed.

Meanwhile, the Chaikin Money Flow (CMF), an indicator showing the strength of money flowing into or out of an asset, has turned negative during the sell-off, confirming strong outflows.

Although the CMF has improved somewhat during the recovery of XRP, it is still weak and has not entered the positive zone, signaling that buyers remain hesitant.

xrpXRP CMF Chart | Source: TradingView## Consolidation and Key Levels to Watch for XRP

These technical indicators show that XRP is currently in a cautious consolidation phase. While the support level near $1.9 appears strong, the limited improvement of the CMF indicates ongoing instability in the market.

Overall, this analysis aligns with the main supportive views around 1.75 to 1.8 dollars still intact. Only when the weekly closing price definitively falls below these supports will it confirm the bearish outlook.

Traders should closely monitor the interaction of XRP with key support and resistance levels.

XRPXRP price chart | Source: TradingViewSpecifically, a breakout confirmed above $2.33 and then $2.65 will signal a continued price increase, while a decisive break below the support level of $1.75-1.8 will indicate an increased risk of a fall.

Minh Anh

XRP-2.54%
H1.05%
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