Analysts predict a potential XRP price explosion after breaking a crucial Fibonacci level corresponding to a resistance zone.
XRP continues to hover around $0.53, showing a flattened and negative price trajectory over the past week. In the monthly timeframe, the seventh-largest altcoin is down by over 7%.
Despite this lackluster performance in the short-term window, analysts closely watching XRP’s price action foresee an imminent trend change. Notable market observer “Random Crypto Pal” recently outlined a development that could lead to an explosive price run for XRP.
Watcher for XRP Price Explosion After Breaking This Level
In a post on X, the analyst discussed the significance of XRP breaking above the 0.236 Fibonacci retracement level. He noted that once this level gives way, a price explosion for XRP is likely.
The confidence in this forecast rests on the observation that a similar occurrence was instrumental to the XRP all-time high rally seven years ago.
The accompanying historical chart shows that when XRP’s price crossed the 0.236 Fibonacci level in mid-2017, it initiated and sustained an upward movement that culminated in an all-time high by January 2018.
Random Crypto Pal is not alone in this optimism. In an earlier update, analyst Egrag noted that XRP investors could anticipate a historic price surge based on various significant Fibonacci levels such as 0.5, 0.618, and 0.702, which have historically been points from which XRP prices surged dramatically.
Based on these levels, Egrag argued that even a price target of $44 is a less optimistic estimate for XRP.
XRP’s Path to Surpass the 0.236 Fibonacci Level at $0.80
Notably, the 0.236 Fibonacci level corresponds to a price above $0.80. Essentially, the analyst hopes for history to repeat itself once XRP reclaims this price point, anticipating a historic rally similar to the one that occurred seven years ago.
XRP needs to rise by 48.78% from its current price of $0.5377 to reach $0.80. This crucial $0.80 level poses a formidable resistance for XRP.
For instance, even during the broader crypto market frenzy in the first quarter of the year, XRP did not reclaim this threshold. Instead, it only experienced mild gains that quickly lost momentum after reaching the $0.74 price mark.
Currently, crypto market sentiment is finely balanced between bearish and bullish, as analysts are divided on Bitcoin’s next move in the coming weeks. This situation weakens XRP’s ability to achieve the necessary 48% gain to hit $0.80, which the analyst believes is crucial for further upward movement.
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