Egrag Crypto, a famend crypto analyst, delved deep into the XRP worth trajectory in a current tweet, highlighting the importance of the Quantity Profile Seen Vary (VPVR) in analyzing potential resistance ranges and charting out future worth potentialities.
Utilizing the VPVR metric, Egrag pointed out the Worth Space Excessive (VAH) and Low-Worth Space (VAL) which demarcate the best and lowest costs throughout the 70% complete worth space, respectively. He famous, “To me, it’s crystal clear: XRP has damaged out of a multi-month pattern line and has efficiently retested the breakout.”
XRP Worth Faces Stiff Resistance
This breakout, as Egrag emphasised, positions the XRP worth for a notable surge. Nonetheless, for XRP to chart a secure long-term trajectory, “Establishing a robust basis above VAH is essential.” He additional highlighted the importance of XRP crossing the $1 threshold, describing it as each a “structural milestone” and a “psychological barrier.”
The VPVR, illustrated in Egrag’s chart, is a necessary instrument for merchants. This histogram (on the precise) captures quantity traded at various worth factors over a selected timeframe. It’s notably adept at revealing essentially the most actively traded worth ranges, making it a sturdy instrument for pinpointing help and resistance ranges.
Egrag’s information suggests a VAL for XRP at round $0.16, a degree of management (POC) at roughly $0.20226, and the pivotal VAH at $0.55. On the potential of the XRP worth transferring previous the VAH, Egrag commented, “closing above the VAH $0.55 (within the weekly chart) might be an open excessive & FOMO will kick in and it might push XRP worth to rocket-like ranges.”
Nonetheless, it’s essential to think about that XRP must domesticate a recent quantity profile above $0.55. Presently, buying and selling quantity above this mark is scanty, which could necessitate an preliminary pause within the vary between $0.55 and $1.
Egrag’s second chart reinforces this VPVR evaluation. If bulls can conquer the $0.55 resistance, Egrag tasks an XRP rally in the direction of the $1 mark, a stage final touched in mid-June submit the Ripple abstract judgment within the case towards the SEC.
This earlier brush with the $1 mark didn’t translate right into a sustained surge, indicating the challenges of this threshold. But, with persistence, Egrag envisions XRP marching in the direction of the “subsequent macro resistance” pegged at a lofty $4.5.
4-Hour Chart XRP/USD
On the shorter timeframes, particularly the 4-hour chart, XRP bulls have suffered a setback as we speak. The XRP worth fell beneath the 23.6% Fibonacci retracement stage at $0.5273, which might threaten a fall towards the 200 EMA ($0.5168). This thesis may very well be invalidated if XRP recovers the 20 EMA at $0.5242.
Featured picture from Shutterstock, chart from TradingView.com