Egrag Crypto, a famend crypto analyst, delved deep into the XRP worth trajectory in a latest tweet, highlighting the importance of the Volume Profile Visible Range (VPVR) in analyzing potential resistance ranges and charting out future worth potentialities.
Using the VPVR metric, Egrag pointed out the Value Area High (VAH) and Low-Value Area (VAL) which demarcate the best and lowest costs inside the 70% whole worth space, respectively. He famous, “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 emphasised, positions the XRP worth for a notable surge. However, for XRP to chart a steady long-term trajectory, “Establishing a strong foundation above VAH is crucial.” He additional highlighted the importance of XRP crossing the $1 threshold, describing it as each a “structural milestone” and a “psychological barrier.”
The VPVR, illustrated in Egrag’s chart, is a vital software for merchants. This histogram (on the suitable) captures quantity traded at various worth factors over a selected timeframe. It’s significantly adept at revealing essentially the most actively traded worth ranges, making it a sturdy software for pinpointing assist and resistance ranges.
Egrag’s information suggests a VAL for XRP at round $0.16, some extent of management (POC) at roughly $0.20226, and the pivotal VAH at $0.55. On the potential of the XRP worth transferring previous 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 essential to think about that XRP must domesticate a recent quantity profile above $0.55. Presently, buying and selling quantity above this mark is scanty, which could necessitate an preliminary pause within the vary between $0.55 and $1.
Egrag’s second chart reinforces this VPVR evaluation. If bulls can conquer the $0.55 resistance, Egrag initiatives an XRP rally in direction of the $1 mark, a stage final touched in mid-June publish the Ripple abstract judgment within the case towards the SEC.
This earlier brush with the $1 mark didn’t translate right into a sustained surge, indicating the challenges of this threshold. Yet, with persistence, Egrag envisions XRP marching in direction of the “next macro resistance” pegged at a lofty $4.5.
4-Hour Chart XRP/USD
On the shorter timeframes, particularly the 4-hour chart, XRP bulls have suffered a setback in the present day. The XRP worth fell beneath the 23.6% Fibonacci retracement stage at $0.5273, which may threaten a fall towards the 200 EMA ($0.5168). This thesis may very well be invalidated if XRP recovers the 20 EMA at $0.5242.
Featured picture from Shutterstock, chart from TradingView.com
