Renowned crypto analyst Egrag Crypto has analyzed the XRP price trajectory and identified the importance of the Volume Profile Visible Range (VPVR) in determining resistance levels and projecting future price possibilities. According to Egrag, XRP has broken out of a multi-month trend line and successfully retested the breakout, setting the stage for a significant surge in price.

XRP Price Faces Strong Resistance

While the breakout is promising, Egrag emphasizes the need for XRP to establish a strong foundation above the Value Area High (VAH) and cross the $1 threshold. This level is not only a structural milestone but also a psychological barrier that, once overcome, could propel XRP to rocket-like levels.

The VPVR, illustrated in Egrag’s chart, is a crucial tool for traders, as it reveals the most actively traded price ranges and helps identify support and resistance levels. Egrag’s analysis indicates a VAL for XRP at $0.16, a point of control (POC) at $0.20226, and the pivotal VAH at $0.55. Closing above the VAH could trigger FOMO (fear of missing out) and drive the XRP price even higher.

However, XRP needs to generate a fresh volume profile above $0.55, as trading volume above this level is currently low. This might lead to a temporary pause in the price range between $0.55 and $1.

On the 4-hour chart, XRP bulls have encountered a setback as the price fell below the 23.6% Fibonacci retracement level at $0.5273. If XRP recovers the 20 EMA at $0.5242, this thesis could be invalidated and the price may continue its upward trend.

Summary:

Egrag Crypto, a renowned crypto analyst, has highlighted the significance of the Volume Profile Visible Range (VPVR) in analyzing resistance levels for XRP. According to Egrag, XRP has broken out of a multi-month trend line and successfully retested the breakout, positioning itself for a potential surge. However, for XRP to chart a stable trajectory, it needs to establish a strong foundation above the Value Area High (VAH) and overcome the psychological $1 threshold. The VPVR analysis indicates important levels for XRP, including a VAL at $0.16, a POC at $0.20226, and the pivotal VAH at $0.55. Closing above the VAH could trigger a significant price increase. On the shorter timeframes, XRP bulls face a setback as the price falls below the 23.6% Fibonacci retracement level, but recovery above the 20 EMA could invalidate this thesis.

FAQs:

What is the VPVR?

The Volume Profile Visible Range (VPVR) is a tool used by traders to analyze volume levels at different price points over a specific timeframe. It helps identify the most actively traded price ranges and determine support and resistance levels.

What are the key resistance levels for XRP?

According to Egrag’s analysis, the key resistance levels for XRP are the Value Area High (VAH) at $0.55 and the psychological barrier of $1. Crossing these levels could lead to significant price increases.

What is the significance of the $1 threshold for XRP?

The $1 threshold is considered a structural milestone and a psychological barrier for XRP. Breaking past this level could generate FOMO (fear of missing out) and drive the price to higher levels.

What challenges does XRP face in maintaining a sustained surge?

Past experiences have shown that reaching the $1 mark did not result in a sustained surge for XRP. The challenges of maintaining an upward trajectory at this threshold should be considered.