XRP Faces Crucial Test at $2.63 Resistance Level

Crypto analyst Egrag Crypto has shared a detailed technical analysis on XRP’s price movement, emphasizing a critical resistance level that must be surpassed to prevent a further downward trend. The analyst highlighted that XRP needs to close above $2.63 to avoid a five-wave downward structure, which could confirm the formation of a double-bottom pattern. This pattern is often associated with a potential bullish reversal in the market.

Egrag Crypto noted that some traders, particularly in Australian trading circles, refer to this pattern as the “Boobs” pattern. However, if XRP fails to hold above the $2.63–$2.65 range, there remains a risk of further declines following a five-wave downward structure. The analyst identified key downside targets at $1.71 and $1.60, which represent potential support areas where XRP could find buying interest if the downtrend continues.

The accompanying charts indicate that XRP has already tested key Fibonacci retracement levels, reinforcing the significance of the $2.63 resistance. A failure to close above this level could lead to a corrective wave, pushing the asset toward the predicted support zones. The current market sentiment for XRP is mixed, with some analysts believing that the asset could be forming a double bottom, indicating a potential reversal in its downward trend. However, others are more cautious, suggesting that XRP could be in the midst of a downward wave, specifically Wave 5, which would imply further declines.

The importance of the $2.63 support level cannot be overstated. If XRP fails to close above this level, it could signal a continuation of the downward trend, potentially leading to further losses for investors. Conversely, if XRP manages to close above $2.63, it could indicate a reversal in its trend, providing a much-needed boost to its price. The recent regulatory license secured by Ripple could provide a boost to investor confidence and stabilize the price of XRP. However, the outcome remains uncertain, and investors should closely monitor the situation.