XRP Price Analysis: Will Monthly VWAP Support Hold?

XRP’s price is currently testing the lower boundary of a significant five-month trading range. While a recent pullback has caused some concern, a closer look at the technical indicators reveals a potentially bullish scenario.

Analyst Dom (@traderview2) highlights the importance of several Volume-Weighted Average Prices (VWAPs) in determining XRP’s future trajectory. VWAP, which reflects the average price weighted by volume, often acts as dynamic support or resistance. Dom’s analysis uses quarterly, monthly, and yearly VWAPs to gauge the strength of the current price action.

The quarterly VWAP sits at approximately $2.2796, a level that recently rejected the price. The crucial level to watch is the monthly VWAP, currently around $2.0574. The price is hovering just above this level, suggesting that a bounce could lead to a recovery towards the mid-$2.20 range. Furthermore, the yearly VWAP at $1.8731 provides significant structural support, as evidenced by the April 7th price action.

A key support zone between $1.94 and $2.05 has held consistently since early December. A decisive daily close below this zone would signal a bearish shift, while a sustained hold above it indicates the continued strength of the underlying uptrend. The analyst considers the current retreat a healthy retest of this key support area.

Compared to other large-cap altcoins that have broken through comparable ranges, XRP is demonstrating resilience, especially considering the recent surge in Bitcoin dominance. The key areas to watch are whether buyers can defend the $2.00 level and if the monthly VWAP flips from resistance to support. A failure at either could signal a deeper drop, while a successful defense would reinforce the ongoing uptrend.

In conclusion, while short-term weakness is present, the confluence of VWAP support levels and the historical holding of the $1.94-$2.05 range suggests that XRP remains relatively strong. The coming sessions will determine whether the buyers can defend this crucial support zone and maintain the larger uptrend.

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice.