Amid a Largely Bearish Market, XRP Shows Bullish Momentum Signals

XRP continues to demonstrate bullish momentum despite a predominantly bearish market, with insights provided by the Williams Alligator Indicator.

XRP crossed the pivotal $2 mark earlier this month, prompting analysts to closely observe its potential for trend continuation. The asset has seen a decline of at least 30% since nearing $3 this month.

In a post on X, analyst Egrag shared a comprehensive analysis, highlighting the significance of the Williams Alligator Indicator for XRP’s bull run. This tool employs three moving averages (Jaw, Teeth, and Lips) to detect market trends.

According to Egrag, the current alignment of these moving averages suggests bullish momentum, as long as XRP stays above the equilibrium zone without retracing.

What the Charts Reveal

Egrag’s chart pointed out two crucial “Break of Structure” (BOS) points in XRP’s long-term history. The first occurred in early 2018 when XRP broke its all-time high, and another attempt was made in 2021, but that failed to achieve a new all-time high.

Presently, a new break of structure is materializing, with XRP trading above the equilibrium level of $2. The Williams Alligator Indicator indicates alignment, suggesting a potential continuation of XRP’s bullish trend.

For context, a similar alignment was observed in late 2017, and by January 2018, XRP had reached an all-time high exceeding $3.80.

XRP Long-Term Chart with Williams Alligator Indicator

While the current observation appears promising, Egrag cautions that confirmation is contingent upon upcoming monthly candles. He noted that the present monthly candle seems bearish.

The opening and closing of the following candle will be crucial in solidifying XRP’s direction. Egrag notes that two-candle formations often provide stronger signals for traders.

The $2 Threshold Remains a Key Support Level for XRP

Egrag also emphasized that investors should not be overly concerned as long as XRP stays above $2. Many commentators have noted the necessity for XRP to maintain this psychological and technical support level to sustain bullish sentiment.

A consistent push above this level, alongside a favorable Alligator Indicator setup, could push XRP further into bullish territory.

At press time, XRP is trading at $2.08, having declined by 5% in the last 24 hours. XRP has experienced consecutive days of downturns, putting the $2 price point in jeopardy.

XRP breached this level twice earlier this month but managed a strong rebound after each breach. However, XRP lost momentum shortly thereafter.