Amid a largely bearish market, XRP continues to show bullish momentum signals, with the Williams Alligator Indicator providing key insights.
XRP, which crossed the pivotal $2 mark early this month, has analysts closely monitoring its trend continuation potential. The asset has crashed by at least 30% since approaching $3 this month.
In a post on X, analyst Egrag shared a detailed analysis, emphasizing the importance of the Williams Alligator Indicator for XRP’s bull run. This tool uses three moving averages (Jaw, Teeth, and Lips) to identify market trends.
According to Egrag, XRP’s current alignment of these moving averages suggests bullish momentum, provided XRP maintains its position above the equilibrium zone without retracing.
What the Charts Reveal
Egrag’s chart highlighted two critical “Break of Structure” (BOS) points in XRP’s long-term chart. The first instance occurred in the first week of 2018 when XRP broke its all-time high. A similar attempt happened in 2021, but it failed to send XRP to a new all-time high.
Currently, a new break of structure is developing, with XRP trading above the equilibrium level of $2. The Williams Alligator Indicator shows alignment, suggesting a possible continuation of XRP’s bullish trend.
For context, a similar alignment appeared in late 2017, and by January 2018, XRP was trading at an all-time high of over $3.80.
While the current observation is promising, Egrag warns that confirmation depends on the upcoming monthly candles. He noted that the current monthly candle appears bearish.
However, the opening and closing of the subsequent candle will help solidify XRP’s trajectory. Egrag mentions that two-candle formations often provide a stronger signal for traders.
The $2 Threshold Remains a Key Support Level for XRP
Meanwhile, Egrag stressed that investors have no immediate concern as long as XRP remains above $2. Numerous commentators have previously highlighted the need for XRP to maintain this psychological and technical support level for maintaining bullish sentiment.
A sustained push above this level, combined with a favorable Alligator Indicator setup, could propel XRP further into bullish territory.
At press time, XRP is trading at $2.08, down by 5% in the last 24 hours. XRP has continued to witness consecutive days of downturns, putting the $2 price point at risk.
XRP breached this level twice earlier this month, but a strong rebound followed each breach. Yet, XRP lost momentum shortly after.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
