XRP might be gearing up to embark on a rally that could potentially result in a $50 price, according to expert analysis from Egrag.
XRP’s attempted breakout met stern opposition from the bears yesterday. The asset surged to a 2-month high of $0.5658 before facing fierce resistance. With XRP now back to the $0.51 level, Egrag, a skilled chartist, emphasizes that it is still in an accumulation phase. However, a potential rally to a region he calls “Valhalla” could result in an ultimate price of $50.
Egrag disclosed this while citing findings from an XRP chart on the weekly time frame. The analyst leveraged a color code indicator to assess XRP’s movements.
#XRP A color code signal indicates the path to Valhalla:
Currently, we remain in the accumulation zone until we break through the lower yellow region. Conviction is needed for #XRP to enter the white area. Until then, a drag is possible until Q1 2024.
There's still potential… pic.twitter.com/Ay85b558Mt
— EGRAG CRYPTO (@egragcrypto) June 13, 2023
Notably, the indicator presents four color signals: red, yellow, white and green. According to Egrag’s analysis, for XRP to move towards higher price levels, it needs to break through the lower yellow region, which represents a significant resistance level. This region is situated below the $0.73 territory.
Egrag emphasizes the importance of conviction for XRP to enter what he dubs the “white area.” This white area ranges from $0.73 to $2 and symbolizes a zone where the price of XRP could experience a substantial surge. However, until XRP breaks through the resistance level (yellow region), there is a possibility of a downtrend that could continue until the first quarter of 2024.
XRP Could Hit $12 or $50 Long-term
Despite this cautionary note, Egrag highlights that there is still significant potential for XRP to surge towards the low end of what he calls the “Valhalla region.” He noted that such movement would mark Wave 1. The low end of the Valhalla region represents a price range between $2.8 and $4.6.
If XRP manages to reach these levels, investors could see notable profits. However, Egrag warns that XRP could slip from the low end of the Valhalla region and correct to a $1 price before it stages a much bigger rally that would kickstart Wave 3.
Wave 3, according to Egrag, tends to be 1.618 times the length of Wave 1, and sometimes even 2.618. Based on these projections, Egrag presents two potential values for Wave 3: $12 and $50. These figures represent the price levels that XRP could reach if the rally unfolds as expected. Notably, XRP would need to rally by 9,600% to hit $50.
Meanwhile, XRP has dropped by 2.57% in the past 24 hours following the opposition faced at the $0.56 zone. XRP rode on reports of the release of Hinman’s documents to reclaim $0.56 but its rally was shortlived. The asset is now trading for $0.5154, down 2.94% in the past week.