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After a 52% jump in valuation over a week, one XRP(CRYPTO: XRP) analyst says the token could extend its sharp rebound toward $2 if bulls defend a key support zone.
Will XRP Bulls Defend a Key Zone?
Cryptoinsightuk says XRP’s $1.36-$1.43 range is his first area of interest after the altcoin’s aggressive move off recent lows.
The trader noted that buyers have repeatedly defended the zone following XRP’s move to $1.70.
The detailed X post on Monday highlighted that subsequent retests have also held, potentially establishing a series of higher lows.
The latest consolidation could be the beginning of a higher-low structure.
However, Cryptoinsightuk acknowledged that XRP could instead be forming a deeper ABC correction.
He believes continued strength in Bitcoin(CRYPTO: BTC) and Ethereum(CRYPTO: ETH) could provide enough market-wide momentum for XRP to resume its rally.
Could XRP Race Above $2?
The trader also warned investors not to underestimate XRP’s ability to make rapid moves during periods of expanding crypto volatility.
He pointed to 2017, 2021 and 2024 as examples of periods when XRP price action became “extremely aggressive,” leaving traders with limited opportunities to enter on meaningful pullbacks.
If XRP produces another weekly candle similar to last week, Cryptoinsightuk said the token could potentially already be trading above $2.
Cryptoinsightuk stressed that he is not advocating chasing green candles. Instead, he said his strategy has been to dollar-cost average during weakness in preparation for the possibility of an explosive recovery.
Volatility Could Be Returning
The trader said crypto has just emerged from one of the lowest-liquidity and lowest-volatility periods he has witnessed, potentially setting the stage for much larger price swings.
“Does that mean XRP is about to explode right now? No. Nobody knows,” Cryptoinsightuk said in a separate post.
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