XRP All Set To Rise to $2 as Four Month Chart Shows Imminent Channel Breakout

Crypto analyst EGRAG believes XRP could stage a significant rally, with a target price of $2 amid an imminent breakout of a multi-year descending channel.

In his latest analysis, EGRAG highlighted that the $2 price level carries significant historical significance. In the crypto market, past price points are crucial reference markers. EGRAG points out two critical historical events in this case.

#XRP Descending Channel – Target $2:

This analysis is set on a 4-month time frame, giving us a broader perspective.

The $2 price level holds significant importance as it aligns with key historical points:

✨ Back in January 2018, it marked the peak of the Body Candle ?️
✨… https://t.co/xCXt0GF6IL pic.twitter.com/DFkriT2pCF

— EGRAG CRYPTO (@egragcrypto) September 28, 2023

Significance of the $2 Mark

In January 2018, XRP hit the $2 threshold, marking the peak of the Body Candle on the price chart despite the asset touching $3.31. This historical context suggests that $2 is psychologically significant for traders.

Another vital historical moment occurred in April 2021 when XRP’s price reached $1.96. The $1.96 level marked the peak of the chart’s wick. This second peak indicates that XRP can reach these heights again.

EGRAG emphasizes the importance of analyzing XRP’s price movements in a 4-month timeframe. Higher timeframes filter out false signals, offering a more precise and reliable picture of the asset’s trajectory.

The Descending Channel

To provide visual context for his analysis, EGRAG shared a 4-month chart. This chart reveals the formation of two descending channels. 

The first channel originated in 2018, following XRP’s all-time high (ATH) of $3.31 in January 2018. This high was followed by a series of declines, leading to the creation of the descending channel.

However, XRP experienced a remarkable rally in early 2021, surging to $1.96 in April 2021. The rally resulted in a breakout from the 2018 descending channel. Unfortunately, XRP again began to decline from the $1.96 high, giving birth to the second descending channel.

Drawing from historical patterns, EGRAG predicts that XRP is on the cusp of another significant rally akin to the one observed in April 2021. This rally could propel XRP to reach $2, representing an astonishing 277% increase from its current price of $0.53.

XRP Retests $0.54

It’s worth noting that EGRAG’s analysis builds upon a previous post in which he highlighted two trading zones for XRP: Zone A and Zone B. The Crypto Basic called attention to this earlier analysis last week.

In this analysis, EGRAG noted that XRP traded in Zone A from 2013 to 2017 before moving to Zone B, which featured a higher price range. EGRAG now suggests that XRP could break out of Zone B, entering a new zone with an even higher price range.

Notably, XRP’s current position at $0.53 follows a recent opposition to its latest upsurge. Notably, the asset rallied to retest $0.54 amid news that Judge Analisa Torres denied the SEC’s motion to file an interlocutory appeal in the Ripple case.