Despite XRP’s continued decline and its struggle to regain the $2 level, one analyst believes that the asset approaching the critical technical zone which can determine the next rally. Chart distribution from crypto analyst Egrag Crypto shows if XRP retraces key levels above the 200-week EMA, it could strengthen momentum and pave the way to $8.50.
XRP 200 EMA and $1.55 become the battleground
The expected rally is based on XRP interaction with the 200-week EMAa widely monitored indicator used to assess long-term market momentum. On its accompanying chart, XRP is trying to break above this moving average while also approaching the horizontal resistance zone around $1.55.
According to him, this region is the first meaningful test of the power of coffee. A confirmed week above the 200 EMA and $1.55 shows that buyers are regaining short-term control of the market. Such movement will signal increasing speed and suggest that recent downward pressure may weaken.
Despite this potential change, the broader technical structure remains unchanged. The analyst notes that XRP is still trading within a descending channel which regulated its last price action. As long as the asset remains within this formation, the larger trend continues to reflect a corrective phase rather than a confirmed breakout.
Because of this, reaching $1.55 shows early strength, but it doesn’t cancel it broader bear structure. A stable reversal of the trend is confirmed only after a break from the upper border of the channel.
A break from $2.20 could trigger a rally to $8.5
Beyond the initial resistance test, the analyst identifies a higher confirmation level that can trigger a more aggressive phase. The chart points to a weekly close of $2.20 as the next structural phase for XRP.
Movement above this level puts the price above key resistance within the descending channel and possibly marks the beginning of a wider phase. From a chart perspective, such a breakout coincides with higher Fibonacci retracement levels and the long-term trajectory extends to the $8.5 zone.
However, the chart also shows a downside scenario if the $1.55 resistance does not hold. Rejection at that level can a stimulus from areas of lower liquiditywith the analyst pointing to $1.26 as the first potential upside target.
If the weakness persists, the forecast suggests a deeper move into the $0.95 to $0.85 zone. This area appears on the diagram as a wider support area that the price can be stabilized before the rally is attempted.
At the moment, the direction of XRP depends on its interaction with the 200 EMA and the $1.55 resistance level, which the analyst identifies as a key trigger for whether the market will build short-term strength for a rally or continue its corrective structure.
Featured image created with Dall.E, chart from Tradingview.com
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