XRPs recent pullback to $2 hasn’t changed the broader technical picture, according to new analysis shared on X by crypto analyst Egrag Crypto. Despite the lack of bullish price growth in recent weeks, technical analysis suggests that the market structure still favors the continuation of the uptrend rather than the end of the trend.
These prospects place the next three to six months in a constructive zone for XRP price movements, where further growth is more likely but the risk of downward movement.
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XRP currently in consolidation, not distribution
Egrag’s technical analysis assessment is based on the XRP price action currently ticking a list of boxes indicating that the next move is up. The first of these frameworks is what the analyst called a regime change, which occurred after XRP’s price made a decisive breakout from a multi-year base around $0.50 last year.
This decisive breakthrough shifted the market from accumulation to expansion. Pullbacks in this phase are usually corrective, not the end of a trend. In this context, the current share price can be seen as a part a natural pause, not a signal that a larger bullish move has failed.
Another central argument in the analysis is that the current price behavior represents consolidation rather than distribution. Egrag Crypto describes the market as being in a post-impulse compression phase, and this is a pause, not a peak. Although XRP spent about 13 months ranging within this structure, the analyst interpreted this as a prolonged consolidation rather than a distribution process.
Graph image from X. Source: @egragcrypto On X
The EMA structure keeps the bullish bias intact
Another reason why the trend is more likely to be bullish is that XRP is still trading in line with its long-term exponential moving average, which remains above the 21 EMA. The relationship maintains a bullish bias, although the price is currently below the faster 9 EMA, but this one it reflects only short-term weakness and not a structural breakdown.
Beyond the sheer structure of the chart, fundamental developments have added weight to the case for longer-term appreciation. XRP is currently holding $2 as an important support zone, and there have been recent events that could add to the bullish sentiment.
An example is Ripple conditional approval with other crypto companies for a national treasury bank charter from the US Office of the Comptroller of the Currency.
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Although the outlook is much more optimistic, there is always the possibility that the next six months will turn bearish. According to Egrago, this outlook can only turn bearish if XRP records a sustained monthly close below the $1.80-$1.60 region.
Taken together, the analysis concludes that XRP is more likely to settle higher than lower over the next three to six months, even if there is price volatility along the way.
Featured image from Unsplash, chart from TradingView
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