- XRP must hold below the 21 EMA to form a bullish reversal pattern.
- Trading volume drop signals market hesitation ahead of expected rally.
XRP is drawing attention as technical analyst EGRAG CRYPTO calls for a short-term hold below the 21-day Exponential Moving Average (EMA). EGRAG CRYPTO, a well-known figure in the digital asset space, recently shared his analysis on XRP’s short-term path. He emphasized the importance of XRP staying under the 21 EMA for the next four days.
According to the analyst, this would allow for the formation of bullish candlestick patterns, such as the hammer or bullish engulfing. These patterns are typically seen as signals of a market reversal from bearish to bullish momentum.
EGRAG pointed to a key technical area called the “NO-NO ZONE,” which XRP is currently testing. He noted that maintaining current price levels below the 21 EMA could support a strong bullish breakout.
His strategy is based on a classic setup where a short consolidation leads to an upward trend. The analyst referenced a similar breakout from a symmetrical triangle pattern in late 2023, which triggered a significant price rally.
XRP Price Sees Pullback Amid Low Volume
At the time of writing, XRP is trading at $2.14, down 2.03% on the day. The cryptocurrency opened at around $2.20 but fell under selling pressure, touching an intraday low. Although there were several recovery attempts, XRP failed to stay above $2.16, indicating bearish sentiment in the short term.
Trading volume has also seen a sharp decline. Over the past 24 hours, volume dropped by 37.58% to $2.87 billion. This fall in activity suggests waning trader interest or a pause in momentum. XRP’s market capitalization currently stands at $126.27 billion, with a circulating supply of approximately 58.88 billion tokens.
Setup Aims for Potential July Rally
EGRAG CRYPTO views the current price action as part of a larger bullish setup. He believes that patience during this consolidation phase is critical. By allowing price to stabilize below the 21 EMA, XRP could form the technical base needed for a breakout. He reiterated that this strategy is unfolding, and the market should remain steady while it develops.
A recent report by Coincryptonews shows that XRP’s recent price move aligns with a legal update in the SEC vs. Ripple case. Both sides filed a joint report and asked the Second Circuit Court to pause the appeal. The request awaits a ruling on a pending motion, which delays any resolution until at least August.
With XRP still among the top cryptocurrencies by market cap, traders are watching closely for any signs of reversal. If the predicted setup forms, a rally could take shape as early as July.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
