XRP News Today: XRP Faces Crucial Test at $3.40 Resistance Level

Analyst EGRAG CRYPTO, known for his long-term bullish views on XRP, has shared a chart that has sparked significant discussion within the Ripple community. The chart highlights a critical moment for XRP, which could determine its price trajectory for months or even years ahead. EGRAG's analysis, based on long-term price action from 2012 to 2025, identifies a key resistance level around $3.40 to $3.50 that XRP has repeatedly failed to break through.

This moment is crucial due to the rising triangle pattern that has been forming over several years. The price has been making higher lows while consistently hitting the same ceiling around $3.40, creating a pressure cooker situation where a significant move is imminent. EGRAG presents two potential scenarios: if XRP is rejected at the $3.40 resistance, history suggests a massive drop of around 85%, sending the price back to the $0.40 to $0.50 range. Conversely, if XRP breaks through the $3.40 ceiling, EGRAG predicts explosive upside with potential targets between $10 and $27, with $24 being his base case scenario.

The reasoning behind these ambitious targets extends beyond technical patterns. EGRAG argues that while macro factors like geopolitics and government deficits are important, the real story lies in the tokenization of traditional markets. Trillions of dollars worth of equities, derivatives, real estate, and art could move onto blockchain networks. If XRP captures even a fraction of this market through its utility as a bridge currency, the high price targets become more plausible.

EGRAG's previous analysis suggested that if the total crypto market cap reaches $5.5 trillion and XRP maintains around 27% dominance, the math supports a price of approximately $27 per token. Technical indicators, such as the “EMA 21 and SMA 33 anomaly,” also support this target, with more conservative scenarios pointing to significant upside, including 600% gains leading to $13 and 300% gains reaching $6.70. Timing is another crucial factor, with EGRAG's RSI pattern studies suggesting a cycle top between March and July 2025, giving XRP a short window to either break out or face another major correction.

The current setup is reminiscent of previous XRP cycles where the token spent months testing resistance before either breaking out dramatically or crashing hard. EGRAG frames the choice facing investors as a battle between macro bears focusing on traditional economic headwinds and tokenization believers who see blockchain technology reshaping entire industries. The ascending triangle pattern has been building pressure for years, with each bounce off the rising support line bringing XRP closer to the $3.40 resistance. Triangles typically resolve with explosive moves in one direction or another, rarely with sideways action.

For risk management, EGRAG emphasizes the importance of having a clear exit strategy. If XRP breaks out and starts climbing toward double-digit targets, the moves could be parabolic and difficult to time. Having predetermined exit points becomes crucial to protect profits. The bear case, involving an 85% drop, is also a possibility, as the token has experienced similar crashes in previous cycles. Market sentiment around XRP remains divided, with bulls pointing to ongoing legal clarity and institutional adoption, while bears worry about regulatory overhang and broader market conditions.

EGRAG's analysis is compelling because it is based on specific technical levels, price targets, and timeframes. The $3.40 level is not arbitrary; it has been tested multiple times and represents genuine resistance. The coming weeks and months will likely determine which scenario plays out. Either XRP finally breaks through its long-standing ceiling and embarks on a major bull run, or it gets rejected once again and faces another painful correction. All eyes are on the $3.40 level, which separates XRP's bullish future from another extended bear market. The triangle is tightening, the pressure is building, and something has to give way soon.