XRP faces key test at 50-week EMA with $1.80 target in focus

XRP encounters resistance at major technical levels

Crypto analyst ChartNerd, known for his market structure analysis, noted that XRP pushed up to $1.66 but was unable to secure a weekly close above the 50-week EMA. The bulls had aimed to break this barrier for the first time since XRP reached a high of $1.70, yet their attempt stalled and the price retreated toward $1.50, falling below the indicator.

According to ChartNerd, the 20-week EMA at $1.31 currently acts as critical support for XRP’s bullish outlook. The analyst described the asset as being compressed within the band formed by the 20-week and 50-week EMAs, despite recent sharp moves in its price.

He emphasized that traders should concentrate on the broader structure instead of reacting to short-term volatility, as XRP has not yet broken its key macro support, even after the pullback from $1.66 to $1.50.

ChartNerd called attention to the persistent struggles at major moving averages and questioned whether the bulls can mount a final push above resistance, or if the momentum is fading for XRP.

ChartNerd is an independent cryptocurrency analyst recognized for providing in-depth technical perspectives, with a particular focus on price cycles and moving averages.

Mini dictionary: EMA (Exponential Moving Average), a technical indicator used to smooth out price data and identify trends over a specific period of time. The 20-week and 50-week EMAs help traders spot dynamic support, resistance, and momentum in asset prices.

Upside scenario: Break above $1.50 resistance leads to $1.80 target

ChartNerd stated that a clear break above the 50-week EMA would confirm a bullish setup for XRP and could open the path for prices to advance toward $1.80. He suggested that if the move succeeds, it could indicate that the local low at $0.98 marked the bottom of the recent correction.

He also said that, should resistance at the 50-week EMA persist, XRP could face a deeper retracement. Losing support at the 20-week EMA, currently at $1.31, would increase the likelihood of the price falling back toward $1 or even retesting the $0.98 region.

In ChartNerd’s view, the optimal bullish outcome is a decisive breakout above the current range, targeting $1.80 before any significant correction occurs.

Comparisons with 2022 price cycle

ChartNerd highlighted similarities between XRP’s current price action and its behavior in 2022. Back then, XRP saw a 90% rally from the cycle low to the 50-week EMA, faced resistance, then pulled back to the 20-week EMA, rallied another 30% to retest the 50-week EMA, and ultimately fell back to previous lows.

This year, XRP has climbed about 70% from its recent low of $0.98 to the 50-week EMA, found support at the 20-week EMA, and then rallied another 32% back to the 50-week EMA. ChartNerd also referenced the current readings on the relative strength index (RSI) and stochastic RSI, noting that both indicators are close to levels seen during the 2022 market setup. He cautioned, however, that while historical patterns can offer context, market cycles can change and do not always repeat.

Mini dictionary: RSI (Relative Strength Index) and Stochastic RSI are momentum oscillators used to evaluate overbought and oversold conditions in asset prices, assisting traders in identifying potential reversal points.

Confirmation needed before next move

ChartNerd believes the outlook for XRP depends on confirmation at these key levels. If the price can close above both the 50-week EMA and the $1.50 resistance area, a move to $1.80 becomes more likely. In contrast, further rejection at these zones, coupled with a break below the 20-week EMA, may push XRP back toward $1 and possibly retest its recent low of $0.98.

For now, XRP trades within the narrow range defined by the two major EMAs. ChartNerd advises traders to wait for a clear confirmation before reacting to short-term moves above or below these technical markers.

ChartNerd underscored the importance of patience, stating that rushing to act without confirmation increases the risks, given XRP’s ongoing compression between fundamental support and resistance levels.