The XRP price is showing signs of recovery after crashing under $2 earlier last week due to broader market volatility and decline. With its renewed momentum, analysts are now sharing optimistic projections about its future trajectory. New reports from market expert, Egrag Crypto, highlight the reappearance of a crucial technical signal that could trigger a major trend reversal for XRP. Based on the formation of this signal, XRP may be positioning for an explosive price surge that contradicts the previous bearish developments.
XRP Price Chart Forms Bullish EMA Cross Signal
Egrag Crypto has described the cross between two key Exponential Moving Averages (EMA) as “the real signal.” In his X post shared on Monday, he presented an in-depth review of XRP’s 3-day chart, focusing on the interaction between the 50-day and 200-day EMA and predicting how this technical signal could impact the cryptocurrency’s future price action.
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Egrag Crypto emphasized that many traders have interpreted the narrowing distance between these two key EMAs as the early stages of a bear market. However, his analysis shows that this interpretation does not match the XRP’s technical structure. For a genuine bearish cross to confirm a downward trend, XRP’s price would need to fall decisively below both EMAs as overall momentum begins to weaken.
Currently, XRP sits above the 200 EMA, with the long-term trend line still rising, indicating underlying strength rather than a classic bear market setup. This suggests the cryptocurrency may be gradually building momentum to break out of its ongoing downtrend and move to higher levels.
Egrag Crypto’s chart shows that XRP’s present structure contrasts sharply with its 2018 setup. During that cycle, XRP’s price had collapsed long before the two EMAs crossed, implying that the bearish crossover signal was more of a confirmation than the cause of the weakness. Based on the chart analysis, XRP’s present market structure lacks the characteristics of this historical event, suggesting that the cryptocurrency may be holding firm at levels that could yield more bullish outcomes than before.
Where The XRP Price Is Headed
Continuing his analysis, Egrag Crypto explained that the latest XRP chart setup looks more like the structures seen before its historic bull rallies in 2017 and early 2021. During those bullish cycles, the 500/200 EMAs had tightened, and XRP had remained above the 200 EMA.
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Egrag Crypto noted that the market also entered a compression phase in both years, leading to sharp increases in volatility and explosive price surges. According to the analyst, each time XRP emerged from these conditions, it produced some of its most aggressive vertical moves.
Notably, XRP’s current price chart reflects similar patterns. Egrag Crypto has said the cryptocurrency may be experiencing “late-cycle consolidation” rather than the beginning of a prolonged downtrend. Compression phases of this type often indicate that momentum is building beneath the surface. Based on its structure, the analyst has predicted that the XRP price is likely to head toward its final upside leg rather than a completed top.
Featured image created with Dall.E, chart from Tradingview.com
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