XRP has tumbled more than 31% since peaking near $3.66 in July, including a 12.5% drop in the past seven days that dragged it toward $2.50.
Can XRP hold $2.50 as support and continue rallying afterward?
XRP must flip the 200-day SMA into support
XRP must flip the $2.70-$2.80 resistance zone into a new support zone to target higher highs above $3.00.
However, the XRP/USD pair must first close above the 200-day simple moving average (SMA) at $2.58 on the daily chart.
Reclaiming this trendline has previously been preceded by significant recoveries in XRP price, as seen in July.
Above that, the next level to watch would be the $2.86-$2.96 range, where the 50-day and 200-day SMA currently sit.
As reported, the bulls must drive the price above the 20-day exponential moving average (EMA) at $2.72 to signal a comeback.
XRP has a 57% chance of an upward breakout
XRP charts suggest that a rebound from current levels is possible, provided XRP/USD does not fall under $2.50, according to technical analyst Egrag Crypto.
He shared a chart showing that the XRP price was trading within a “descending broadening wedge which has a 57% chance of breaking to the upside.”
If this happens, the altcoin could rally toward the measured target of the prevailing chart pattern at $9.50.
Egrag Crypto added:
“I believe we’re heading toward a minimum of $9, with an average target of $20 and a high-end target of $27 this cycle.”
The broadening wedge also has a 43% chance of a breakdown that can go as low as $0.50, providing a good level to “buy back,” the analyst added.
Elliott wave analyst XForceGlobal also said that XRP is “still bullish on the macro.”
The chartist views the current price range as the “confirmation stage,” before XRP enters its final bullish push into wave 3 of the cycle.
“From a timing perspective, it’s looking great.”
Several other technical indicators on higher time frames, including the oversold weekly Stochastic RSI, suggest a potential bullish reversal in XRP price.