XRP has dropped more than 5% in the past day amid a significant correction in the cryptocurrency market as a whole. This prominent altcoin is currently trading around $2.81 with no signs that the selling pressure may pause. While this crisis continues, analyst X, known by the nickname Egrag Crypto, has helped identify critical support and resistance levels for bulls in the market.

Hold $2.65 Or Accept Collapse Risk, Break $3.12 And Prepare For A Bull Run

In a post on X on August 2, Egrag Crypto shared an intriguing technical perspective on the XRP market currently undergoing a significant correction. According to this renowned analyst, macro analysis shows that this altcoin still maintains a bullish structure; however, the current price correction can only be resolved through two paths.

Firstly, micro price analysis indicates that XRP must achieve a daily closing price above $3.12 to signal a market bottom entry point. By doing so, this cryptocurrency will reclaim important resistance levels, paving the way for potential increases to higher levels like $3.60.

On the other hand, the nearest major support level is around $2.65. Egrag Crypto explains that a continuous price drop to retest this bottom could trigger a bullish run, pushing XRP to its current all-time high of $3.84. However, any sudden price breakdown below $2.65 could create quite a catastrophic scenario, suggesting a potential low of around $2.19.

XRP Could Still Surge to $17

In other news, Egrag Crypto's analysis also shows that XRP is still within a macro, long-term cycle, indicating a multi-year bullish cycle with repeating structural characteristics. Key factors in this model include the formation of a bullish pennant pattern, indicating a continuation pattern, the EMA 21 line (green dotted line) often aligning with significant trend movements, the support line (red line), and the market cycle peak (blue line).

Notably, XRP has broken out of the bullish pennant pattern, signaling the intention to maintain the current upward trend. However, this altcoin is facing a tough resistance level to overcome around $3.84, coinciding with the intersection between the mid-cycle peak and the EMA 21 line. If XRP can surpass this resistance level, investors should expect a direct bullish surge to the anticipated cycle peak of $17, equivalent to a potential increase of 525% from the current market price.

At the time of writing, XRP is trading at $2.81, reflecting a decrease of 5.32% from the previous day as noted earlier. This recent price decline emphasizes a volatile trading phase for this altcoin, having lost more than 11.38% of its market value in the past week. However, the 22.18% monthly price increase indicates that a significant number of investors are still in profit despite these corrections.