XRP could be on the verge of reclaiming $2, according to notable analyst EGRAG, who identified a current retest of a descending channel and bullish monthly pennant confirmation.
#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.
* It's evident that #XRP is currently undergoing a retest phase following… pic.twitter.com/MQjqkol81e
— EGRAG CRYPTO (@egragcrypto) October 11, 2023
EGRAG presented his insights with two distinct analyses, each shedding a different light on XRP’s price movements. The first analysis builds on a previous report made by the analyst. In the earlier statement, EGRAG called attention to two trading zones for XRP and the formation of what he called the Steel Foundation.
The Steel FoundationÂ
According to him, the Steel Foundation represents XRP’s most robust support point for each zone: A and B. In Zone A, the Steel Foundation stood at the price range of $0.00485 and $0.00596. However, for Zone B, XRP’s current position, the Steel Foundation spans from $0.25939 to $0.32630.
XRP slipped into Zone B during the rally from late 2017 to early 2018. Upon entering Zone B, the asset formed the second Steel Foundation. XRP is still trading in Zone B, but EGRAG believes the asset is on the verge of towering over this region to form the third zone.
According to him, the formation of the third zone would begin with the creation of the third Steel Foundation. He notes that this third Steel Foundation would range between $1.6 and $2.Â
What confirms his bullish projection is a descending channel within Zone B. EGRAG’s chart shows that XRP broke above this channel when it rallied to $0.93 in July. However, the asset is currently retesting the channel amid the recent retracement.
The analyst believes this retest is a precursor for a massive upsurge. Should this upsurge materialize, EGRAG projects $2 as the price target, leading to the formation of the third Steel Foundation. Note that the previous breakouts came before a retest of past channels.
Bullish Monthly Pennant
EGRAG’s second analysis adds substance to his bullish projection. The accompanying chart reveals the formation of a bullish pennant on the monthly time frame. The analyst asserted that this formation is “incredibly bullish.”
He noted that opting for a monthly time frame can help reduce the occurrence of misleading signals. According to him, the formation of the strong flagpole is a clear indicator of a rapid price surge.
Interestingly, data from the chart shows that XRP formed the pennant during an extensive price consolidation. EGRAG stressed that It’s essential to recognize that pauses in an uptrend often serve as precursors to further upward movements.Â
After a breakout from the pennant, the analyst noted that a substantial increase in trading volume serves as confirmation for the upward trajectory. He charged his audience to estimate the target for the upcoming upsurge by measuring the flagpole’s height, which formed during the 2018 rally.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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