Market Technician Says No Sugarcoating — XRP Is Done if It Closes Below This Level

XRP is showing bearish momentum, with a top market analyst highlighting the crucial moving average it must hold to avoid further declines.

Notably, market technician Egrag Crypto recently spotlighted this development as XRP joins a broader bearish trend. After rebounding from $1.82 two weeks ago to stabilize around $2.20 for most of last week, the cryptocurrency has now corrected by over 7% over the past two days, trading close to the $2 price mark.

XRP Must Hold Critical EMA

Meanwhile, Egrag Crypto identified three possible scenarios for XRP, using Fibonacci levels and moving averages. Notably, one outcome is an intense capitulation in XRP if it closes below its 21-month exponential moving average (EMA).

He emphasized the need to stay above this indicator, suggesting that XRP is done for in the event that it closes below the 21 EMA. “No sugar-coating it,” he said.

At the time of writing, the 21 EMA stands at $1.907, which is 6.38% away from the current market price of $2.037. A close below would set XRP’s price on a path toward lower price targets, such as $1.55, as predicted by other analysts.

It bears mentioning that the analyst specifically mentioned a close below the 21 EMA. This indicates that while XRP could fall below it, it would need to remain below for a monthly close to confirm the downside.

Bullish Possibilities Remain

Nonetheless, bullish possibilities remain for XRP. Egrag Crypto shared what he described as bullish and super bullish scenarios for the coin using Fibonacci levels.

Specifically, he shared that a close above the 0.50 Fibonacci level highlighted in an accompanying chart would spell bullish momentum for XRP. Notably, this aligns with the $2.60 price mark, which is 27% away from the current price. However, he noted that XRP is not entirely free from a downside at this level.

XRP Analysis/Egrag Crypto

Meanwhile, he identified a super-bullish scenario in which XRP closes above the 0.88 Fib. level at $3.40. A retest of the January high would set up a strong upside momentum for the cryptocurrency, potentially taking it to unprecedented prices.

XRP Not Bearish in the Slightest

However, XRP remains in bearish territory with recent retracements. Specifically, its over 5% downturn has wiped out $16.74 million in leveraged positions in the past 24 hours, with $16.13 million being long traders.

Yet, analysts remain resolute that XRP could stun bears imminently. Charting Guy is among those with this sentiment, stating that XRP is not bearish in the slightest. He cited the asset’s trend above the 2021 peak of around $1.97 as an indication of its bullishness.

This builds on his stance that XRP was merely testing holders’ patience, and many are already folding. He suggested that XRP is in an accumulation phase and that a breakout to $8 would follow.