Ripple’s cryptocurrency, XRP, is currently at a critical support level of $2.50. Traders and analysts are unsure if the price will rise from here or drop further. XRP has decreased by nearly 31% since its peak of $3.66 in July, including a sharp 12.5% drop in the past week, causing short-term investors to feel cautious.
Analysts say XRP’s next move depends on whether it can recover above the 200-day simple moving average (SMA) at about $2.58. Traditionally, closing above this level signals a potential rebound. Traders are also watching the resistance zone between $2.70 and $2.80, which must become support for XRP to reach the psychological level of $3.00.
The convergence of the 50-day and 200-day SMA between $2.86 and $2.96 reinforces this crucial barrier. A daily close above these averages could indicate that XRP is beginning a sustained upward trend.
Crypto analyst Egrag Crypto notes that XRP is forming a descending broadening wedge, which often leads to significant price shifts. He sees a 57% chance of an upward breakout, estimating targets between $9.50 and $27.00 for this cycle.
Egrag believes the minimum price will be $9, with an average of $20 and a high of around $27 in this cycle. However, he warns that this pattern also has a 43% chance of breaking down, which could push prices down to $0.50, a level he suggests buying for those who can wait.
Elliott Wave expert XForceGlobal supports the idea that XRP is on an upward trend in the long run. He describes the current price range as part of a “confirmation stage” before entering a major upward move. Several indicators, like the oversold weekly Stochastic RSI, hint at a possible bullish reversal from these levels.
XRP’s immediate challenge is to keep the $2.50 support and regain strength in its trend. A daily close above the 20-day exponential moving average (EMA) near $2.72 could signal the start of a recovery, boosting traders’ hopes for a new upward phase.
While the chart signals mixed possibilities, the overall mood remains cautiously optimistic. If bullish momentum continues, analysts believe XRP might reach its July highs again, possibly starting a new rally.
This information is for educational purposes only and does not constitute financial or investment advice. Cryptocurrency trading carries risks, so readers should do their own research before making decisions.