XRP is attracting attention as technical analyst EGRAG CRYPTO calls for the price to hold short-term below the 21-day exponential moving average (EMA). EGRAG CRYPTO, a prominent figure in the digital asset space, recently shared his analysis of XRP's short-term roadmap. He emphasized the importance of XRP staying below the 21 EMA for the next four days.
According to the analyst, this will allow for the formation of bullish candlestick patterns, such as the hammer pattern or the bullish engulfing pattern. These patterns are often seen as signals of a market reversal from bearish momentum to bullish momentum.
EGRAG points out an important technical area known as the 'NO-NO ZONE,' which XRP is currently testing. He notes that maintaining the current price level below the 21 EMA could support a strong bullish breakout.
His strategy is based on a classic setup, where a short consolidation leads to an upward trend. The analyst referenced a similar breakout from a symmetrical triangle model at the end of 2023, which triggered a significant bullish run.
XRP's price has decreased in the context of low volume.
At the time of writing, XRP is trading at $2.14, down 2.03% on the day. The cryptocurrency opened at around $2.20 but has fallen under selling pressure, hitting a daily low. Despite some recovery attempts, XRP has been unable to hold above $2.16, indicating short-term bearish sentiment.
Trading volume has also dropped significantly. In the last 24 hours, volume has decreased by 37.58% to $2.87 billion. This decline in activity indicates that trader interest is waning or the upward momentum is stalling. XRP's market capitalization currently stands at $126.27 billion, with a circulating supply of approximately 58.88 billion tokens.
Setting targets for a potential bullish rally in July.
EGRAG CRYPTO views the current price action as part of a larger bullish setup. He believes that patience during this consolidation phase is crucial. By allowing the price to stabilize below the 21 EMA, XRP could form the technical base necessary for a breakout. He reiterated that this strategy is in play and the market will remain stable while it develops.
A recent report from Coincryptonews indicates that XRP's recent price movements align with the legal update in the SEC lawsuit against Ripple. Both parties have filed a joint report and requested the Second Circuit Court of Appeals to pause the appeal. This request is pending a ruling on a pending motion, delaying any resolution until at least August.
With XRP still among the top cryptocurrencies by market capitalization, traders are closely watching for any signs of reversal. If the predicted setup forms, a bullish rally could materialize as early as July.
