XRP is the top performing larger-cap altcoin today, surging by 5% even after it was stopped at $1.18.
The Friday market massacre didn’t leave any digital asset behind, including Ripple’s cross-border token, which plunged to $1.05 for the first time in about 19 months.
The asset has rebounded swiftly, though, and neared $1.20 earlier today, where it faced some selling pressure. Although it has slipped to $1.13 as of press time, it’s still 5% up daily and has reclaimed a few key support levels.
Maybe More Pain Ahead Though?
Despite today’s impressive rebound from the local lows, popular analyst EGRAG CRYPTO noted that the broader market structure remains unfavorable for the bulls in the short term. They explained that XRP may still be in the final stages of a deeper correction before it has the chance to commence its actual rally.
The analyst pointed to a recurring pattern observed across previous cycles that revolves around the interaction between the 50 EMA and the 100 EMA on higher timeframes. Historically, when XRP decisively loses the former on the monthly chart, it tends to trigger a chain reaction. Momentum fades, price breaks down, emotional capitulation, and ultimately a final liquidity sweep toward the 100 EMA.
According to EGRAG, the sequence appears to be in play now as the current trajectory still appears tilted to the downside, with the market searching for what could become its actual macro bottom. If history repeats, Ripple’s cross-border token could face additional pressure before completing this cycle’s “capitulation phase.”
And, Then The Rally
EGRAG believes this is the painful part necessary to occur before XRP heads toward a more profound rally. Rather than attempting to pinpoint the exact bottom, which has proven in the past century to be a notoriously difficult task, the analyst emphasized that it wouldn’t matter if investors enter at $1.10, $0.92, or even lower levels like $0.70 once the token explodes.
Their macro targets began with a more modest $7 or even $8, before even higher ones at $13 or “even Mid-Double digits?”
You may also like:
“Trying to catch the perfect bottom is one of the fastest ways to miss the entire macro move.
That’s why I focus on:
▫️Position building
▫️Liquidity management
▫️Probability zones
▫️Macro structure
▫️ And Not ego.”
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).
LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!
