XRP’s Future Trajectory: Technical Analysis Points to Potential Upside
EGRAG, a prominent analyst, recently shared insights from a technical analysis of XRP’s Weekly Volume Profile Visible Range (VPVR) chart, shedding light on the asset’s possible future direction. Within the VPVR, two critical markers have caught the analyst’s attention: the Value Area High (VAH) and the Low-Value Area (VAL). These markers play a significant role in shaping XRP’s journey ahead.
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#XRP Weekly VPVR ( Volume Profile Visible Range):
Value Area High (VAH) represents the highest price within the 70% total value area, while the Low-Value Area (VAL) marks the lowest price within this range.
To me, it's crystal clear: #XRP has broken out of a multi-month trend… https://t.co/7qtxPNoVuu pic.twitter.com/7g16Vkci8f
— EGRAG CRYPTO (@egragcrypto) October 5, 2023
Understanding VAH and VAL
The Value Area High (VAH) is the highest price level within the 70% total value area, while the Low-Value Area (VAL) represents the lowest price within this range. Currently, VAH sits at approximately $0.55, presenting a formidable resistance level, while VAL hovers around $0.14. These price levels provide essential reference points for analyzing XRP’s potential price movements.
Bullish Outlook
EGRAG’s analysis paints a bullish picture for XRP. He asserts that the asset has broken free from a multi-month trendline and successfully retested the breakout. This retest is seen as a positive sign, potentially setting the stage for a significant upward movement in XRP’s price.
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The multi-month downward trendline in question was formed when XRP experienced a sharp decline from its high of $1.96 in April 2021. This trendline persisted until July of the current year when XRP managed to break above it following a lawsuit victory. However, amid recent market corrections, the asset has revisited this trendline.
Notably, VAH, positioned at $0.55, lies above this trendline, making it a critical level to watch. EGRAG emphasizes that surpassing the $1 mark in weekly candle closures carries both structural and psychological significance for XRP.
The Yellow Trendline Challenge
EGRAG directs attention to a yellow trendline on the chart, which he believes could pose a significant challenge to XRP’s future trajectory. This yellow trendline is identified as the next macro resistance point for XRP. Data from the chart indicates that XRP’s upcoming rally may encounter resistance at this level.
The timing of XRP’s rally could significantly impact its potential value. If XRP establishes the grounds for a rally sooner, it could face the next macro resistance at $3. However, if the rally takes longer to materialize, the next macro resistance level could be as high as $4.5.
EGRAG’s Call to the XRP Community
EGRAG concludes his analysis with a message to the XRP community, urging them to remain steadfast. He highlights that the next time XRP closes above $1 could signify the end of XRP trading below this milestone on a monthly basis. Given XRP’s current value at $0.5227, achieving a price of $4.5 would require a remarkable 761% rally.
In summary, EGRAG’s technical analysis points to potential bullish momentum for XRP, with critical resistance levels and timing considerations playing a pivotal role in determining the asset’s future trajectory. XRP enthusiasts are watching closely as the cryptocurrency strives to overcome these hurdles on its journey to greater heights.
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Dr. Olajide Samuel juggles the demands of medical studies with a passion for cryptocurrency. A seasoned blogger, Olajide shares his vast global knowledge of the crypto space, offering insights to enthusiasts. Despite his busy schedule, his commitment to crypto remains strong, and he actively seeks ways to contribute to its future.
