XRP's price trajectory has had its ups and downs over the past two weeks. In particular, the majority of the past seven days have been characterized by a significant decrease of $2.5 from $2.8 before rebounding at this level.
Interestingly, the fall to $2.5 was highlighted by Crypto analysts on the TradingView platform. Crypto analyst Tehthomas previously identified the $2.5 level as a key fair value gap (FVG) that could serve as a strong support, and the recent price movement has been reported to have been the buyer after reaching this level. It suggests that there is an intervention.
XRP tests key fair value gap for $2.50
Tehthomas' analysis highlighted $2.50 as a key liquidity zone where XRP can establish support before continuing its uptrend. This level serves as an imbalance of price action during this cycle, often causing responses as traders intervene to fill the gap. At the time of analysis, XRP was trading at $2.64, but analysts pointed out that cryptocurrency could continue to fall until it reaches $2.5 and rebounds upwards.
Over the past two days, XRP has moved along with this prediction. The cryptocurrency was withdrawn from $2.64 and soaked into a low $2.47 of $2.47 before showing a quick recovery. The rapid bounce from this zone indicates a concentration of purchase orders at this level, and the bulls who were expecting a response here also intervened.
With the decline and rebound unfolding as expected, the focus is on how XRP behaves in the coming days. As I tested and respected this $2.5 support zone, the next question is whether the Bulls will build on this momentum and get upwards.
Demand zone to surge Altcoin
Crypto Analyst Tehthomas believes that the next key step in XRP is beyond the trendline of downward resistance due to a fair value gap that shows signs that it serves as a strong support. The breakout point for this downtrend trendline is around $2.65, with passes between $2.5 and $2.6 being the demand zone for opening long positions. However, there is also the possibility of a retest of the trendline for downhill resistance following breakout. If the XRP price exceeds the trend line and can be successfully retested and held, a bullish momentum check for even more reversed movements is provided.
If this scenario is played, the next target for XRP will be $3.00. This is another important fair value gap. Tehthomas says regaining this level could lead to an extended rally, which could potentially exceed $3 more depending on the market situation.
At the time of writing, XRP is trading for $2.55.
