XRP might be close to getting back to $2, as per analyst EGRAG. They’ve spotted a retest of a downward channel and a positive signal from a monthly pattern, which suggests a bullish trend.
EGRAG shared two different views about XRP’s price. The first one is based on an earlier report where he talked about two specific trading areas for XRP and the creation of something he called the “Steel Foundation.”
#XRP Teetering on the Edge – $2 Inbound (UPDATE):
* To gain a deeper insight into the chart's dynamics, I recommend reviewing the post from October 6, 2023, on the following link: https://t.co/RO4K8B83jc.
— EGRAG CRYPTO (@egragcrypto) October 11, 2023
The Steel Foundation
EGRAG believes that XRP has certain strong support levels called the “Steel Foundation” in different price zones. In Zone A, this support was between $0.00485 and $0.00596. Right now, in Zone B, where XRP is trading, the Steel Foundation ranges from $0.25939 to $0.32630.
XRP moved into Zone B during a previous rally from late 2017 to early 2018, and it formed the second Steel Foundation there. EGRAG thinks XRP is about to move above this region and create a third zone.
For this to happen, a new Steel Foundation needs to form. EGRAG thinks this third Steel Foundation will be between $1.6 and $2.
What makes him optimistic is a descending channel within Zone B. He shows that XRP broke out of this channel when it went up to $0.93 in July. Right now, it’s retesting this channel during a recent pullback.
EGRAG believes that this retest is a sign of a significant surge coming. If this surge happens, he predicts that XRP could reach $2, and this would mark the formation of the third Steel Foundation. It’s important to note that previous breakouts occurred before retesting old channels.
Positive Monthly Pennant
In his second analysis, EGRAG strengthens his positive outlook. He uses a chart to show that there’s a bullish pennant on the monthly time frame, and he’s really excited about it.
XRP Bullish Monthly Pennant | EGRAG Crypto
He thinks that looking at monthly data is helpful because it reduces the chances of getting misleading signals. EGRAG believes that the formation of a strong flagpole is a clear sign that the price is going to go up fast.
What’s interesting is that the chart shows that XRP made this pennant during a long period of price consolidation. EGRAG wants us to understand that these pauses in an uptrend often happen before prices go up even more.
When the price breaks out of this pennant, EGRAG says that it should be backed up by a big increase in trading volume. He suggests that you can estimate how high the price might go by measuring the flagpole’s height, which was formed during the 2018 rally.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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