Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. After years of trading below its previous all-time high from 2018, XRP finally broke throughthe $3.40 ceiling to hit a fresh record of $3.65 on Friday, July 18. The move capped off a rallythat had seen the cryptocurrency rise by 68% from its July open. Related Reading Whales? No, Newbies: Surge In New BTC Holders Fuels Market Rally—Study 2 days ago
However, XRP has returned to hovering around the $3.40 to $3.50 zone following the breakout, and attention is shifting to the possibility of a strong pullback.Interestingly, prominent XRP analyst Egrag Crypto says that a retest to $3.12 might be necessary before any further price increase. Analyst Points To $3.12 As Retest Zone
In a new post onsocial media platform X, respected crypto analyst Egrag Crypto cautioned that XRP may be due for a retest of the $3.12 level. The analyst referenced the Fibonacci 0.888 level, which currently sits at $3.1279, as a logical support zone if XRP were to retrace from its current price zone. According to his technical chart, XRP is currently consolidating within a descending channel on the 4-hour candlestick timeframe chart since it peaked at $3.65. However, it is still trading above $3.40, which is a bullish sign.
“Staying above Fib 1.0 ($3.40) is a super bullish sign,” he noted, “but we still need to keep an eye on the descending channel.” Keeping this in mind, XRP could break below the $3.40 level, and a retest could happen at Fib 0.888 ($3.12). XRPUSD currently trading at $3.49. Chart: TradingView
The $3.12 level stands out not just because of Fibonacci symmetry, but also because it coincides with an order block that formed as XRP pushed to new highs. If XRP returns to test this level and holds firm, it may confirm strength in the current rally structure and build the foundation for a continued climb toward the 1.21 Fibonacci extension, which is situated at $4.16.
Chart Image From X: Egrag Crypto Bullish Momentum Still Intact
Although some investors may see a drop to $3.12 as a setback, Egrag believes the outcome could actually be bullish in the bigger picture. “If we do see a retest here, it could set us up for another launchpad,” he explained. However, skipping the retest entirely would be even more telling as a clear sign that the bulls are stronger than anticipated. Related Reading $57 Billion Mistake? Ex‑Ripple Engineer Reveals XRP Investment Blunder 1 day ago
A clean hold above $3.40 in the coming days would point to bullish dominance, especially if XRP breaks out of the yellow descending channel featured in Egrag’s chart. On the other hand, a controlled revisit to the $3.12 zone may offer a better entry point for new investors and prepare XRP for its next leg up to the $4.16 price target highlighted in the analysis.
At the time of writing, XRP is trading at $3.49.
Featured image from Unsplash, chart from TradingView