XRP is testing a key support level to determine the altcoin’s price action in the coming weeks. There is uncertainty and anxiety in the market after last week’s euphoria surrounding the Federal Reserve’s decision to cut interest rates.

Despite this positive news, recent price movements have worried traders who expected a huge boost in XRP prices this cycle.

The current situation has increased caution among investors as many are now looking for confirmation above or below critical liquidity levels. This hesitation has caused some analysts to share predictions based on the latest price action, adding to uncertainty.

As XRP oscillates near this inflection point, investors are closely monitoring whether it can break through resistance or fall, which would signal a change in momentum. The next few days will be crucial as they will likely reveal whether the altcoin can maintain its upward trajectory or if it will succumb to market pressure, impacting not only the token but potentially the broader altcoin market.

The analyst expects XRP to boost soon

XRP is currently facing significant risks as it is hovering around the critical $0.50-$0.55 area. For the price to confirm its bullish continuation, it must stay above this level in the coming days. Analysts and investors are eagerly awaiting a signal that could trigger a surge in prices, especially as the broader market remains uncertain amid recent volatility.

Top analyst and investor Ali shared his bullish view on XRP by: technical analysis published on X. In his analysis, Ali presents a chart illustrating the dominant pattern of XRP price action since June 2022, which appears to be forming an ascending parallel channel.

This channel indicates a potential upward trajectory and if this pattern continues, XRP could move towards the mid to upper boundary of the channel, currently trading around $0.80 and $1.10 respectively. This move would mean a potential boost in XRP of 75% or more in the coming weeks.

However, this bullish outlook depends on XRP positioning above a critical support level. If it does not do this, there is a risk of a deeper correction, which may worsen investor sentiment and stop the growth dynamics.

With investors closely watching further price action and potential breakouts, the next few days will determine whether XRP can regain its bullish trajectory or succumb to broader market pressures. The sentiment among analysts is cautiously bullish, and the community is ready to act on XRP’s ability to navigate this pivotal moment.

Technical Analysis: Key Levels to Watch

XRP is trading at $0.53 after losing the 200 daily moving average (MA) of $0.54 and the 200 exponential moving average (EMA) of $0.55. This recent price action has raised concerns among traders as the price struggles to maintain its upward momentum.

However, the price remains above the critical support level at $0.50, a key psychological threshold. If the price were to fall below this level, it could create significant selling pressure, leading to a deeper decline.

On the other hand, if the bulls manage to regain both the MA 200 and the EMA, it will signal a potential change in dynamics. A successful break above $0.65 could pave the way for a significant rally, reigniting bullish sentiment in the market. This scenario depends on XRP’s ability to recover and exert enough buying pressure to break through these critical resistance levels.

With investors closely monitoring the price action, the coming days will be crucial in determining whether the price can rebound and set itself on a possible upward trajectory.

Featured image from Dall-E, chart from TradingView