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Despite the prolonged downward trend, an analysis suggests that XRP (Ripple) could rise to as high as $8.5 if it breaks above its 200-week moving average.
According to cryptocurrency media outlet Bitcoinist on March 7 (local time), digital asset analyst Egrag Crypto stated that XRP is approaching a critical technical juncture as it tests the 200-week exponential moving average (200EMA) and the $1.55 resistance zone. He explained that a breakout above this range could strengthen short-term bullish momentum.
According to the analysis, the 200-week EMA is regarded as a key indicator for determining long-term market trends. If XRP breaks above both the 200-week EMA and the $1.55 resistance level and maintains a weekly close above them, buying pressure could regain control of the market. This could serve as an early signal that recent downward pressure is weakening and that bullish momentum is forming.
However, XRP’s long-term structure remains within a descending channel. Egrag noted that until the price breaks above the upper boundary of the current downward channel, the market should still be viewed as being in a corrective phase structurally. In other words, a move above $1.55 would be an initial bullish signal, but not yet confirmation of a long-term trend reversal.
A stronger signal of a bullish reversal could emerge with a breakout above approximately $2.20. If XRP surpasses this level on a weekly basis, it would signal a structural shift beyond the descending channel resistance, potentially extending the long-term price target to $8.5 based on Fibonacci extension levels.
Conversely, if XRP fails to break above the $1.55 resistance, downward pressure could intensify again. In that case, the first downside target would be around $1.26, and if further weakness follows, a decline to the $0.95 to $0.85 range is possible. Analysts state that XRP’s short-term direction hinges on whether it can break above the 200EMA and the $1.55 resistance area. At the time of writing, XRP was trading at approximately $1.36.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses arising from it. The content should be interpreted for informational purposes only.*