Despite XRP’s continued decline and its struggle to regain the $2 level, one analyst believes the asset is approaching a decisive technical zone that could determine the next rally. A chart breakdown from crypto analyst Egrag Crypto shows that if XRP reclaims key levels above the 200-week EMA, it could strengthen momentum and open the path towards $8.5.
XRP 200 EMA And $1.55 Become Immediate Battleground
The projected rally is based on XRP’s interaction with the 200-week EMAa widely monitored indicator used to assess long-term market momentum. In his accompanying chart, XRP is attempting to move above this moving average while simultaneously approaching a horizontal resistance area around $1.55.
According to him, this zone represents the first meaningful test for bullish strength. A confirmed weekly close above both the 200 EMA and the $1.55 level would indicate that buyers are beginning to regain short-term control of the market. Such a move would signal increasing momentum on the upside and suggest that the recent downward pressure may be weakening.
Despite this potential shift, the broader technical structure remains intact. The analyst notes that XRP is still trading within a descending channel that has governed its recent price action. As long as the asset remains inside this formation, the larger trend continues to reflect a corrective phase rather than a confirmed breakout.
Because of this, reaching $1.55 signals early strength, but it does not invalidate the broader bearish structure. A sustained trend reversal would only be confirmed after a break above the channel’s upper boundary.
Break Above $2.20 Could Trigger A Rally Toward $8.5
Beyond the initial resistance test, the analyst identifies a higher confirmation level that could trigger a more aggressive bullish phase. The chart points to a weekly close above roughly $2.20 as the next structural milestone for XRP.
A move above this level would place the price beyond key resistance within the descending channel and potentially signal the beginning of a broader expansion phase. In the chart’s projection, such a breakout aligns with higher Fibonacci extension levels, with the longer-term trajectory extending towards the $8.5 region.
However, the chart also outlines a downside scenario if the $1.55 resistance fails to hold. A rejection at that level could trigger a sweep of lower liquidity areaswith the analyst pointing to $1.26 as the first potential downside target.
If weakness persists, the projection shows a deeper move towards the $0.95 to $0.85 region. This area appears on the chart as a broader support zone where price could stabilize before attempting to stage a rally.
For now, XRP’s direction hinges on its interaction with the 200 EMA and the $1.55 resistance level, which the analyst identifies as the key trigger determining whether the market builds short-term strength for a rally or continues its corrective structure.
Featured image created with Dall.E, chart from Tradingview.com
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