Top crypto analyst Lark Davis has been closely monitoring XRP and recently unveiled a new trading setup as the asset approaches a critical technical milestone. According to Davis, XRP is currently testing its 50-day Exponential Moving Average (EMA), a key indicator used by traders to gauge the asset’s momentum and potential price direction.
He shared on social media (X platform) that this test of the 50-day EMA could signal a breakout opportunity, potentially setting the stage for XRP to gain significant upward traction. Davis emphasized that this level is worth watching closely as it may pave the way for a bullish move if the technical barrier is successfully breached.
XRP Price Movement: Key Support Levels in Focus
Lark Davis highlighted that XRP recently tested support at the 20-day EMA (yellow line) due to traders taking profits. Earlier in the week, XRP saw strong upward momentum, climbing 11.5% from $2.06 to $2.30 on Tuesday and Wednesday. However, it later pulled back to around $2.10. Since then, XRP has rebounded from this support level, showing short-term strength from buyers.
According to CoinMarketCap data, XRP is currently trading at $2.19, reflecting a 0.17% increase in the last 24 hours. Analyst Davis predicts further gains and has outlined entry points, targets, and stop-loss levels for a short-term XRP long position.
According to Lark Davis, he is taking a long position on XRP at a price of $2.20 and his target for taking profit is set at $2.45. This $2.45 target corresponds to a well-established trendline that has consistently acted as a resistance level for XRP’s price since January 2025.
Davis anticipates the ongoing rally might face resistance at this level, marking it as a strategic exit point. This would result in an 10–12% gain from the entry price, with potential for higher returns when using leverage. To manage risk, he has set a stop-loss order at $2.17, slightly below the 50-day EMA support, to limit losses if the trade doesn’t pan out. If this attempt fails, Davis mentioned a possible second opportunity around the 20-day EMA at $2.13.
Also Read: How High Will Dogecoin (DOGE) Rise in May 2025?
Disclaimer
The information in this article should not be considered financial advice, and the OvenAdd platform is intended only to provide educational and general information. Please conduct your own research and consult a financial advisor before making any investment choices.
