Analyzing XRP Price Trajectory with VPVR
Egrag Crypto, a well-known crypto analyst, recently discussed the XRP price trajectory and highlighted the importance of using the Volume Profile Visible Range (VPVR) to analyze potential resistance levels and predict future price movements.
According to Egrag, the VPVR metric reveals the Value Area High (VAH) and Low-Value Area (VAL), which represent the highest and lowest prices within the 70% total value area. Based on this analysis, Egrag believes that XRP has broken out of a multi-month trend line and successfully retested the breakout.
XRP Price Faces Resistance
Egrag suggests that this breakout positions XRP for a significant surge. However, establishing a strong foundation above VAH is crucial for XRP to chart a stable long-term trajectory. Crossing the $1 threshold is also seen as a structural milestone and psychological barrier for XRP.
The VPVR is an essential tool for traders, as it captures volume traded at different price points over a specific timeframe. It helps identify the most actively traded price ranges, making it useful for determining support and resistance levels.
Based on Egrag’s data, XRP has a VAL around $0.16, a point of control (POC) at approximately $0.20226, and a pivotal VAH at $0.55. If XRP can close above the VAH, Egrag believes that FOMO (fear of missing out) will kick in, potentially pushing the price to rocket-like levels.
Considerations for XRP Moving Forward
It is important to note that XRP needs to establish a new volume profile above $0.55. Currently, trading volume above this level is low, which may result in a pause between $0.55 and $1. Egrag’s second chart reinforces this analysis.
In the past, XRP briefly touched the $1 mark but failed to sustain a surge. However, Egrag envisions XRP eventually reaching the next macro resistance at $4.5 with patience.
4-Hour Chart XRP/USD
On the 4-hour chart, XRP bulls faced a setback as the price fell below the 23.6% Fibonacci retracement level at $0.5273. This could potentially lead to a further decline towards the 200 EMA ($0.5168). The thesis could be invalidated if XRP recovers the 20 EMA at $0.5242.
Hot Take: XRP’s Potential Surge and Challenges Ahead
According to Egrag Crypto’s analysis using VPVR, XRP has broken out of a long-term trend line and shows potential for a significant surge. Establishing a strong foundation above VAH and crossing the $1 threshold are crucial milestones for XRP’s stability and growth.
However, XRP needs to cultivate a fresh volume profile above $0.55, as trading volume in that range is currently low. If bulls can overcome this resistance, Egrag predicts an XRP rally towards $1 and potentially even higher levels in the future.
Despite previous challenges in sustaining a surge beyond $1, Egrag remains optimistic about XRP’s potential and envisions it reaching a macro resistance of $4.5 with patience. Traders should also consider shorter timeframes, such as the 4-hour chart, where XRP faces setbacks but could recover with the right indicators.
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