With the general crypto market flashing green in recent days, XRP investors are awaiting the possibility of the token breaking out of its consolidation zone below $0.50.
In this line, crypto analyst Egrag Crypto opined in an X post on June 30 that the token may still have some upside, suggesting it could likely rally past the $6 mark.
The expert analysis is based on observing key XRP Fibonacci levels in particular. The analyst emphasized the significance of the current monthly candle formation closing above the 0.236 Fibonacci level.
Notably, this pattern is interpreted as a natural consolidation phase, setting the stage for a potential breakout.
In this line, the next major target is the 0.5 Fibonacci level at around $1. If XRP can surpass this with strong momentum, the path to the 1.618 level, and hence to $6.4, becomes much clearer, the popular trader noted. This value reflects a spike of over 1,200% from the XRP’s current price.
“With all the saga in the last couple of weeks, the monthly time frame candle formation is closing above Fib 0.236. This is simply a natural consolidation! Next target:Fib 0.5! Flip it with conviction, and then we fly to Fib 1.618 ($6.4),” the expert said.
XRP’s breakout from consolidation
The projected price would be a welcome move within the XRP community as the token faces questions about its long-term sustainability. Notably, concerns have emerged considering that the token has been outperformed by 75% of the top 100 crypto assets over the past year, failing to catch up with peers such as Bitcoin (BTC) and Ethereum (ETH).
Amid the sustained consolidation below $1, the majority market consensus maintains that XRP still has the potential to rally once it shakes off current woes, such as the legal tussle between Ripple and the Securities Exchange Commission (SEC).
For instance, as reported by Finbold, crypto analyst Trading Shot pointed out that historical price movement suggested the potential for XRP’s growth. The analysts noted that based on these patterns, talk of XRP collapse might be premature.
In the short term, another analyst, RLinda, noted that the next possible target for XRP is the $0.73 mark. She stated that XRP is continuously testing the wedge resistance, and as long as the token maintains support above $0.46, it is likely to target $0.73 next.
Overall, the ongoing legal litigation remains a key determining factor in whether the asset will break out of the current consolidation. As things stand, both parties are awaiting the conclusion of the matter.
Notably, the court found that Ripple violated federal securities laws through institutional sales of XRP but dismissed other charges. Ripple is contesting the SEC’s proposal to fine the company nearly $2 billion, advocating for a civil penalty not exceeding $10 million.
XRP price analysis
XRP’s chart on the weekly timeframe shows signs of consolidation. At the time of reporting, the token was trading at $0.48 with 24-hour gains of 1.4%. On the weekly chart, XRP is up less than 0.1%.
Over the past seven days, XRP has seen support levels fluctuate between $0.468 and $0.475, providing stability and prompting rebounds, notably on June 27 and June 29. Resistance levels have been observed around $0.485 and $0.490, where the price encountered upward barriers on July 1.
Overall, XRP has predominantly been affected by bearish sentiments, consistently trading below its 200-day simple moving average with only 13 green days out of the last 30. The cryptocurrency remains 88% below its all-time high and faces an annual inflation rate of 6.08%.
These metrics underscore the significant challenges XRP faces in overcoming its current predicaments.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
