XRP Price Breakout: This Resistance Level Holds The Key

Republished By Plato

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Egrag Crypto, a renowned crypto analyst, delved deep into the XRP price trajectory in a recent tweet, highlighting the significance of the Volume Profile Visible Range (VPVR) in analyzing potential resistance levels and charting out future price possibilities.

Using the VPVR metric, Egrag pointed out the Value Area High (VAH) and Low-Value Area (VAL) which demarcate the highest and lowest prices within the 70% total value area, respectively. He noted, “To me, it’s crystal clear: XRP has broken out of a multi-month trend line and has successfully retested the breakout.”

XRP Price Faces Stiff Resistance

This breakout, as Egrag emphasized, positions the XRP price for a notable surge. However, for XRP to chart a stable long-term trajectory, “Establishing a strong foundation above VAH is crucial.” He further highlighted the significance of XRP crossing the $1 threshold, describing it as both a “structural milestone” and a “psychological barrier.”

XRP Weekly VPVR

The VPVR, illustrated in Egrag’s chart, is an essential tool for traders. This histogram (on the right) captures volume traded at varying price points over a specific timeframe. It’s particularly adept at revealing the most actively traded price ranges, making it a robust tool for pinpointing support and resistance levels.

Egrag’s data suggests a VAL for XRP at around $0.16, a point of control (POC) at roughly $0.20226, and the pivotal VAH at $0.55. On the potential of the XRP price moving past the VAH, Egrag commented, “closing above the VAH $0.55 (in the weekly chart) will be an open high & FOMO will kick in and it could push XRP price to rocket-like levels.”

However, it’s crucial to consider that XRP needs to cultivate a fresh volume profile above $0.55. Presently, trading volume above this mark is scanty, which might necessitate an initial pause in the range between $0.55 and $1.

Egrag’s second chart reinforces this VPVR analysis. If bulls can conquer the $0.55 resistance, Egrag projects an XRP rally towards the $1 mark, a level last touched in mid-June post the Ripple summary judgment in the case against the SEC.

This previous brush with the $1 mark didn’t translate into a sustained surge, indicating the challenges of this threshold. Yet, with patience, Egrag envisions XRP marching towards the “next macro resistance” pegged at a lofty $4.5.

Next macro resistance for XRP price

4-Hour Chart XRP/USD

On the shorter timeframes, specifically the 4-hour chart, XRP bulls have suffered a setback today. The XRP price fell below the 23.6% Fibonacci retracement level at $0.5273, which could threaten a fall toward the 200 EMA ($0.5168). This thesis could be invalidated if XRP recovers the 20 EMA at $0.5242.

XRP price