In the aftermath of Bitcoin’s flash crash, the Ripple price experienced a sharp decline, dragging down the entire altcoin market. 

Despite the recovery above the 200-day exponential moving average (EMA) at $0.5712 by daily close, Ripple’s price remains down by around 10% compared to the recent high. The price briefly plummeted by 21%, dropping from approximately $0.64 to $0.505. However, on Jan.4, Crypto analyst Egrag Crypto maintained a bullish outlook and identified positive aspects of the recent downturn.

#XRP Short Term Analysis – Daily TF (UPDATE):

A) In August, #XRP flirted with the lower boundary of its channel, facing a significant 1 billion liquidation across #Crypto.

B) Now, after five months, it's revisiting that zone with another aggressive 1 billion liquidation.

C)… https://t.co/GyNXNcyQb1 pic.twitter.com/1Ijkg3wxOG

— EGRAG CRYPTO (@egragcrypto) January 4, 2024

Egrag’s latest analysis of the 1-day XRP/USD chart suggests that XRP is preparing for an upcoming upswing. The chart, presented on X, provides insights into the current position of XRP and potential future movements.

Egragcrypto XRP Chart

XRP’s Crucial Point

Analyzing the August scenario where Ripple touched the lower boundary of its ascending channel during a massive crypto liquidation of $1 billion, Egrag notes a similar situation in the present. Despite significant liquidation, Ripple finds itself at a crucial juncture, with the bulls defending the price above the “Val Hell Line” at approximately $0.55.

Egrag considers this line the most critical support, and the steadfast buying by Ripple Bulls is seen as a strong bullish signal. Despite the market turmoil, Egrag emphasizes the sentiment, stating:

Surprisingly, the #XRP #Bulls have staunchly defended this channel, buying into the dip as if there’s no stopping them.

The analyst views another retest as standard market behavior within the broader context and interprets it as a potential consolidation phase leading to a potential upswing.

Egrag’s chart incorporates Fibonacci retracement levels, particularly highlighting the 0.702 level at about $1.1096 and the 0.5 level at approximately $0.7529. These levels are crucial for monitoring potential support and resistance zones, with the 0.702 Fib level potentially coinciding with a breakout from the trend channel between April and May.

XRPUSD | 1-Day Chart

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