- There’s good news regarding a potential surge in the price of XRP for August, but with a caveat.
- One technical analyst claims the token must maintain at least 4.5% dominance to help bring back its bullish momentum.
- Another urged investors to watch out for dips that may go as low as $2.55 to $2.40.
Widely followed technical analysts have recently presented good and bad news about the possible price trajectories of XRP. One side presents a reassuring projection on the short-term moves of the token, while the other warns of a substantial dip.
Good News: XRP Must Maintain Over 4.5% Dominance to Keep the Bulls Going
According to the pseudonymous Egrag Crypto, XRP must maintain at least 4.5% dominance in the cryptocurrency market. The level is necessary for the token to keep its bullish pennant formation.
At the time of his post on Saturday, the price of XRP hovered at a critical point around $3 and dipped in some instances on the daily chart. This brought the market cap of XRP to $178.8 billion.
Heavy selling pressure following Bitcoin’s (BTC) dip to $113K heading to the weekend hurt long crypto positions considerably. As a result, the market opened in August with roughly $922 million long liquidations against measly $91 million shorts.
Despite that, XRP kept over a 4.8% share in the dominance chart on early Saturday morning (UTC), providing optimism that the asset will rebound significantly from its drop in the past couple of days. The crypto market cap currently sits at $3.71 trillion, with Bitcoin retaining a 61% dominance.
Bad News: Support Further Down the $3 Line is Imminent
XRP barely held on to Egrag’s previous $3.03 monthly candle close prediction for a continuation of his bullish prospects, so he warned that investors must watch out for key supports at $2.65, $2.30, and $1.80 in the short run. Anything below that could spell bad news for them.
Another renowned technical reader, Ali Martinez, cautioned investors of a looming $2.55 to $2.40 dip for XRP in the short term. He based his assessment on the candlestick patterns between the aftermath of the November 2024 to January 2025 rally to a $3.38 top and the mid-July surge to a $3.65 peak.
TradingView, however, reflected a consistent “Buy” in its overall recommendation for XRP amid the sudden cooldown in crypto market sentiment on Saturday.
Final Thoughts
Nothing is set in stone, as the crypto and traditional markets are ever-changing. Critical announcements about the progress of the case between the US Securities and Exchange Commission (SEC) and Ripple, spot XRP exchange-traded funds (ETFs), and breakthroughs on XRP Ledger (XRPL) and Ripple could make or break these technical trends in XRP. Hence, we urge readers not to base their investment decisions entirely on the limited facts presented here and to do their own research.
Nothing in this article should be construed as investment advice or product recommendation coming from the Blockzeit team. Readers should always consult a professional or registered investment adviser who will tailor their strategies to their risk tolerance and available finances.
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