Renowned crypto analyst Egrag Crypto recently shared a technical analysis of XRP’s price movement, highlighting a significant market correction followed by a strong recovery. His tweet detailed the market conditions before and after a 40% decline in XRP’s value and outlined the next key resistance levels for a potential bullish continuation.
#XRP – Before and After the Crash:
✅Before the Crash:
I pointed out in the chart that a 40% drop was possible, along with the target and the edge of the channel.
✅After the Crash:
Now, the bulls are buying up everything! We’ve kept things steady, and our next goal is to push… pic.twitter.com/ccmvRlyMz9— EGRAG CRYPTO (@egragcrypto) February 3, 2025
Before the Crash: Predicting the Drop
Egrag Crypto had previously warned of a possible 40% correction, emphasizing the importance of technical indicators that suggested a downturn. His chart, published on January 29, 2025, showed a critical price level of approximately $1.83, marking a potential support zone where a reversal could occur. A key bearish signal, the Shooting Star candlestick pattern, was forming on the monthly chart, signaling a possible trend reversal.
In his analysis, Egrag highlighted that for XRP to maintain bullish momentum, the monthly candle needed to close above $2.93. He also noted that the market volume was relatively low, further reinforcing the risk of a pullback. If the next monthly candle closed below $1.83, it would confirm a trend reversal and signal further downside pressure.
The bearish scenario unfolded as anticipated, with XRP experiencing a significant 40% decline, dropping from approximately $3 to $1.83 before finding support and rebounding.
After the Crash: A Strong Rebound
Following the decline, Egrag Crypto observed a strong buying reaction from bulls, pushing XRP’s price back above key levels. His updated chart, published on February 3, 2025, highlighted the importance of maintaining stability above the $1.83 support zone. The market has since shown renewed bullish sentiment, with buyers stepping in aggressively.
Egrag emphasized that the next major resistance lies at $3, which is a psychological and technical level. He suggested that if XRP successfully breaches this level, it could trigger the next bullish wave.
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Community Members Respond
The crypto community actively engaged with Egrag’s analysis, with users commenting on the predictable nature of market movements. One X user, Wizz, noted , “We’ve had 7 years to learn this. What goes up must respectfully come down before heading back up.” This reflects the broader understanding that market cycles involve corrections before resuming an upward trajectory.
Another user, The Wolf of Wall Street, asked , “After going up to $3 from here, will there be another drop, sir?” Egrag responded , “Markets move in waves, yes there will always be drops,” reaffirming the cyclical nature of price action in financial markets.
Key Takeaways and Future Price Movement
Egrag Crypto’s analysis underscores the importance of technical indicators in anticipating market movements. The 40% drop followed by a strong rebound aligns with historical price behaviors. Moving forward, the key levels to watch are: $1.83 as critical support, $2.93 as a bullish confirmation level, and $3.00 as a breakout target for the next bullish leg.
Acontinued bullish trend is likely if XRP maintains its position above $2.93 and successfully breaks through $3. However, as Egrag pointed out, corrections are a natural part of market cycles, and traders should remain cautious of potential retracements.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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