XRP is approaching an important technical level that could influence its price direction over the coming days. Crypto analyst Egrag Crypto believes the cryptocurrency may be preparing to break above a descending trendline that has restricted its price movement for several weeks.
At the time of writing, XRP is trading at $1.19. According to the chart analysis shared earlier, a daily close above $1.30 could provide an important bullish confirmation, particularly if XRP maintained support around $1.27.
In his latest X analysis, Egrag Crypto examined XRP’s daily chart and identified what he described as a potential fifth touch of the descending yellow trendline. He believes a successful breakout, followed by a retest and sustained support, would strengthen the bullish outlook.
XRP Breakout Level
The analyst’s chart shows a yellow descending trendline connecting several lower highs recorded during XRP’s decline from its September price levels. Egrag Crypto highlighted four previous interactions with this trendline and suggested that the latest price movement could produce a fifth touch.
He believes a daily candle close above $1.30 would represent a significant development for XRP. Such a close would indicate that buyers have gained enough strength to push the price beyond the descending resistance that has restricted upward movement.
However, Egrag Crypto emphasized that traders should pay attention to the closing price rather than assume that an intraday move above the level confirms a breakout.
At the time of the chart’s publication on November 4, XRP traded around $1.307, placing it above the $1.30 threshold. The analyst’s focus now shifts to whether the cryptocurrency can maintain that position.
Support Level Needed to Defend
Beyond the potential breakout, Egrag Crypto identified $1.27 as the support level XRP needs to defend.
He explained that XRP holding above this level while remaining above the yellow descending trendline would represent particularly strong bullish price action over the next few days.
The analyst’s chart also identifies several resistance levels that XRP would need to overcome following a confirmed breakout. The first stands at $1.3234, followed by $1.3551.
A move beyond these levels could bring XRP closer to the $1.3884 region, which Egrag Crypto labels the Zone of Confidence.
These levels provide a clearer picture of the price areas the analyst believes could influence XRP’s recovery if buyers maintain control.
Egrag Crypto Wants a Confirmed Retest Before Further Gains
Egrag Crypto also explained that he does not expect XRP to record an immediate explosive rally. Instead, he wants to see the cryptocurrency break above resistance, retest the former resistance area, and establish support before attempting further gains.
According to his analysis, the longer XRP maintains its position above the breakout level, the stronger the bullish case becomes.
His chart also presents a longer-term Elliott Wave projection, with a potential upward movement following the completion of the current corrective structure. However, that projection remains conditional on XRP establishing the necessary technical support.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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