Ripple's XRP Approaches Key Support Level Reflecting 2018 Growth

Ripple’s XRP has once again captured attention due to a technical formation that echoes its 2017 market behavior. Traders are now observing its performance around a crucial support level that previously initiated a significant upward movement.

XRP Returns to 21-Month EMA Support

In 2017, XRP surged following its exit from a multi-year triangle, maintaining its position above the 21-month EMA before dramatically rising in early 2018. Analyst JD noted that XRP is currently following a similar trajectory. It has recently broken out from a large triangle and is rebounding off the same 21-month EMA.

This setup has sparked hopes that XRP could replicate its previous upward trend. At the moment, price fluctuations indicate that the asset may be preparing for another notable movement if it sustains this pattern. JD stated:

“In 2017, we broke out from triangle, consolidated for over a year, retested 21M EMA… then parabolic in Jan 2018.”

Strong Rally Fades at Resistance

XRP recently drove from below $1.90 to $2.41 within a mere week, propelled by increased ETF inflows and a decrease in token availability on exchanges. However, this fervent rally has recently lost momentum, with the asset trading back down to $2.07 at the time of reporting. Its 24-hour volume has surpassed $2.88 billion, with slight price declines noted over the past 24 hours and nearly a 3% drop over the preceding week.

Analyst ChartNerd commented,> “$XRP has a job on its hands,” referring to the fierce resistance looming ahead. Both the Weekly 20 EMA and the midpoint of the Gaussian channel are poised near $2.26, now acting as resistance levels.

“Fail to push up/break them, then we resort back to multi-month support,” they added.

Meanwhile, XRP is currently reacting to former triangle support, now testing it as resistance. Another analyst, Javon Marks, expressed that XRP’s existing formation matches its breakout in 2017. During that period, the token exceeded its anticipated value.> “XRP can be on the way to its measured move target above $16.5,” he noted, indicating an expected 663% increase from current levels.

“$XRP, in its 2017 breakout structure, not only surged to its measured move target but also well above.”

With a nearly identical structure emerging, XRP may be on track to reach its target above $16.5, which could lead to a greater than 663% surge from current standings.

Market Conditions Remain Mixed

CryptoWZRD remarked that XRP’s daily candle closed without a distinct direction. > “A move above the $2.1000 resistance is bullish territory,” the analyst mentioned, suggesting that Bitcoin’s future actions could influence market directions.

Signs of caution are also apparent. Ali Martinez highlighted a potential gravestone doji forming, indicating weakness in momentum. Concurrently, whale activities have diminished. A report from CryptoPotato indicated that large XRP transactions rose during the price spike but have since decreased, implying lesser engagement from significant holders.