According to Egrag, a drop to $0.22 is also likely to play out if the current downtrend persists.
XRP could surge to a high of $1.4 upon the reversal of the current downtrend the asset has been caught in since May 2021, according to Egrag Crypto, a notable cryptocurrency analyst. The last time XRP saw the $1.4 price point was in May of 2021.
Egrag’s latest forecast is influenced by a falling wedge pattern formed by XRP in its current 21-month downtrend. He highlighted two possible scenarios that could play out for the asset at its current position: a dip to $0.22 in the event that the downtrend is sustained, and a surge to $1.4 once the trend reversal kicks in.
#XRP Overlaying Chart:
Falling Wedges r considerably #Bullish & failure rate is somehow low. It can present as both
1) Continuation–> 0.22c is in play
2) Reversal Pattern–> $1.4 is in play
By overlaying Fibs, it shows that Fib 0.786 will play a major role in the next move pic.twitter.com/1WK9PM0Ucw
— EGRAG CRYPTO (@egragcrypto) February 3, 2023
For context, a falling wedge pattern is a bullish reversal pattern that occurs when the price of an asset is moving downwards but the price swings start becoming smaller and smaller down the slope, forming a wedge shape. This pattern is considered bullish because it suggests that the selling pressure is diminishing, and the buyers are gaining control – a trend that could potentially lead to a price increase.
Egrag believes the $1.4 price point would play out once XRP starts experiencing a trend reversal. However, he disclosed that the Fibonacci point at $0.786 would serve as a significant resistance point for the asset’s price movement. Notably, if XRP can conquer the resistance at this level, its bullish run to $1.4 becomes even more likely.
Most XRP Forecasts Remain Bullish
Amid the bullish speculations regarding the outcome of the legal battle between Ripple and the U.S. SEC, several market watchers have forecasted a potential massive rally for XRP. Analyst Crypto Bull noted yesterday that the asset is currently forming a similar bottom pattern to what was observed in 2017 before its meteoric rise. “Pay attention,” he said.
#XRP is forming the same bottom structure as in 2017, before it exploded by 100,000%. Pay attention! pic.twitter.com/qBMeKlY2vU
— CryptoBull (@CryptoBull2020) February 3, 2023
Moreover, XRP advocate and analyst Alex Cobb also forecasted a massive rally from this point, signaling that XRP is currently in “the biggest triangle of all time.” Though Cobb’s prediction of a rise to $10 has been met with dispute, most of these contrary views still remain bullish. XRP is currently trading at $0.4096 as of press time, down 0.46% in the past 24 hours. The asset is currently aiming to establish a comfortable position above the $0.41 level.