Analyst Identifies Next Level XRP Must Reclaim to Recover on 3-Day Time Frame

Following a bearish symmetrical triangle breakout to the downside, an analyst has identified where XRP needs to reclaim to restore bullishness. 

Last month and earlier this month, the XRP market was predominantly bullish, with XRP holding firm above the $3 psychological price. As a result, most analysts, including EGRAG Crypto, leaned toward a bullish bias. 

XRP Breaks Down from Symmetrical Triangle 

EGRAG confirmed this bias in a previous analysis from Sept. 13, in which he identified a symmetrical triangle that XRP had formed since the drop from the $3.66 peak in July. At the time, EGRAG confirmed a 50/50 chance of a breakout to the upside or downside, but he leaned toward the upside.

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As September came to a close and the market slipped into the “Uptober” phase, XRP’s technicals looked stronger than ever until Oct. 10 when the broader crypto market witnessed an unexpected flash crash, leading to XRP breaking toward the downside, as it briefly slumped below the $2 psychological mark.

Despite a quick recovery above the $2 level, XRP remained below the lower trendline of the symmetrical triangle, struggling to even recover the mid-point of the $2 mark. Amid the current market realities, EGRAG recently provided an update to his September analysis.

According to him, what he expected to be the breakout of the symmetrical triangle was a “total failure.” He confirmed that while he leaned toward an upward breakout, the possibility of a breakout to the downside was always there.

Levels to Watch Out for

Now that the downward breakout has occurred, EGRAG identified three important price levels that investors must watch. Specifically, the first level is what he calls XRP’s “critical support.” The analyst pointed out that this support rests on the $2.20 level. He warned that XRP must not close below this price on the 3-day timeframe. 

Meanwhile, EGRAG also called attention to a level he referred to as “the bullish signal.” According to him, this area rests between $2.55 and $2.65. EGRAG emphasized that if XRP ever records a close above this range on the 3-day timeframe, it would send a bullish signal. 

Beyond this area, the analyst identified the final level that could confirm an imminent XRP rally to new all-time highs. In particular, EGRAG noted that breaking above the $3.2 to $3.4 area would set the stage for a rally toward new highs. Notably, the last time XRP saw this level was in early August.

While the analyst failed to explicitly highlight any new ATHs, his chart projected a run to $4.2 for when XRP secured an upward breakout from the symmetrical triangle. Meanwhile, EGRAG has also persistently suggested that XRP could be on the path to a $27 price, representing a 997% increase from the current price of $2.46.