Crypto analyst Egrag Crypto has discussed the possibility of the XRP price witnessing another corrective move. He revealed the price level that XRP needs to stay above to avoid further downside pressure and rally to the upside. 

XRP Needs To Stay Above $2.66 To Avoid Corrective Move 

In an X post, Egrag Crypto stated that if XRP fails to close above the $2.65 to $2.70 range, it won’t negate the wave 4 move and will likely lead XRP down to the 5th wave. His accompanying chart showed that the altcoin could drop to as low as $1.7 on this corrective move, breaking the crucial $2 support level in the process. The analyst had previously highlighted this $2.65 as being critical for a bullish breakout. 

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Egrag Crypto alluded to the fact that the US SEC was finally dropping its long-running lawsuit against Ripple, which is typically bullish for XRP. The analyst admitted that it was a significant win for long-term adoption and utility, reinforcing the belief in the altcoin’s use. However, he added that the focus has to be on the numbers and charts in the short term. 

In line with this, he remarked that a close above $2.66 would be a good sign, followed by another close above $2.97 as a second bullish confirmation. He asserted that the ultimate confirmation for a bullish trend would be a close above $3.40, which is XRP’s current all-time high (ATH). A close above $3.40 would lead to the next target between $5 and $8. 

Crypto analyst CasiTrades also echoed a similar sentiment, stating that XRP needs to break above $3.40 to confirm a new trend. Until then, she remarked that market participants will have to wait for signs of confirmation, which may not be obvious until wave 3 in the market cycle. Before now, the analyst affirmed that the market is on the edge of a breakout, and this week could be a defining moment, which already looks to be the case with the Ripple SEC lawsuit. 

A Rally To $5 Already In Play

Crypto analyst Dark Defender suggested that an XRP rally to $5 was already underway after the SEC decided to drop the Ripple lawsuit. His accompanying chart showed that XRP could witness a breakout to the $5 target. The altcoin will first rally to around $4.4 on wave 3, then correct to $3.7 on wave 4 before the rally to $5.6 on wave 5.

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Meanwhile, crypto analyst CrediBULL Crypto raised the possibility of XRP dropping below $2 and reaching $1.7 before any parabolic move to the upside begins. He predicts that the altcoin will rally to double digits regardless of how the price action plays out in the short term. 

At the time of writing, the XRP price is trading at around $2.45, up over 7% in the last 24 hours, according to data from CoinMarketCap.

Featured image from Adobe Stock, chart from Tradingview.com

Stellar’s XLM token has climbed 6% over the past week as the broader crypto market shows signs of recovery. At press time, the altcoin trades at $0.28. 

However, a key momentum indicator is flashing warning signals, suggesting the rally may be short-lived. Should XLM holders brace for decline?

XLM Struggles to Hold Gains

A bearish divergence has emerged with XLM’s Chaikin Money Flow (CMF), indicating weakening buying pressure despite the recent price increase. While XLM’s price has climbed in the past week, its CMF has fallen, remaining below the zero line at -0.10 at press time.

This trend occurs when an asset’s price rises while its CMF declines, signaling that fewer investors are supporting the rally with actual capital inflows. As a result, the uptrend may be unsustainable, increasing the risk of a reversal.

If the divergence persists, XLM’s selling pressure could build up, increasing the likelihood of a price reversal or correction in the near term.

Moreover, XLM’s funding rate has flipped negative for the first time in six days, highlighting the growing bearish bias against the altcoin. At press time, the figure is -0.0018%.

The funding rate is a periodic fee exchanged between long and short traders in perpetual futures contracts, reflecting market sentiment. When it turns negative, short positions are dominant, indicating bearish sentiment as traders increasingly bet on a price decline.

As more traders bet on XLM’s price decline, demand will continue to weaken, and downward pressure on its price will increase. 

XLM Down Over 50% Since November—Is a Reversal on the Horizon?

On the daily chart, XLM trades within a descending parallel channel. It has remained within this bearish channel since reaching a three-year peak of $0.63 last November. Now trading at $0.28, the altcoin’s price has since plunged 55%.

With strengthening bearish pressure, XLM risks falling below the channel’s lower trendline. If this happens, the altcoin could trade at $0.23.

Conversely, if XLM accumulation resumes, its price could rally past the resistance at $0.30. If succesful, it could attempt to reach $0.41.

President Trump just gave a brief pre-recorded speech at the Digital Asset Summit, his first such address as a sitting head of state. He focused on past accomplishments and alluded to new stablecoin developments.

Trump implied that he may be helping create more dollar-backed stablecoins in the near future, but he didn’t make a firm commitment. Still, the federal government could use such an asset to provide huge amounts of liquidity to the whole crypto ecosystem.

Trump’s Summit Speech

Since taking office, President Trump has had a huge impact on US crypto policy. Yesterday, it was announced that Trump would speak at the Digital Asset Summit in New York City this morning. Via pre-recorded broadcast, he talked about his existing accomplishments and emphasized his hope for stablecoin regulation:

“I’ve called on Congress to create simple, common-sense rules for stablecoins and market structure. With the right legal framework, institutions large and small will be enabled to invest, innovate, and take part in one of the most exciting technological revolutions in modern history,” he said.

This isn’t Trump’s first experience speaking at a Summit like this; two weeks ago, he hosted a Crypto Summit at the White House. However, this didn’t have a huge impact on markets. Comparatively, he made a huge splash when he spoke before a crowd at the Bitcoin Conference in Nashville. The community hoped that his speech today would build bullish sentiment.

Lately, the crypto community has been desperate for a bullish narrative. Credible fears of a US recession are discouraging investment, and the “Made in USA” assets have suffered from previous disappointments. However, stablecoin regulations may be able to more fully integrate crypto with the US economy and the global economy in general.

“With the dollar-backed stablecoins, you [the community] will help expand the dominance of the US dollar for many, many years to come. It’ll be at the top, and that’s where we want to keep it,” he added.

This clear signal that Trump wants to aid dollar-backed stablecoins, possibly even creating new ones, could be huge. Recently, members of his greater orbit were allegedly in talks with Binance about creating such an asset. By fusing the US economy with these tokens, Trump could provide a huge amount of liquidity for the entire space.