Prominent chartist EGRAG has set two targets of $10 and $50 for XRP depending on the asset’s trajectory from here, following the formation of a historic three green candle structure.
In his analysis, EGRAG emphasized the importance of candle formations in evaluating the direction of an asset.
Taking this into account, the chartist highlighted the formation of a three consecutive green candle structure on the monthly timeframe.
According to him, this structure is pivotal, as it has only appeared two times in XRP’s entire history. Interestingly, each of the two times, XRP registered a massive rally.
Historical Context
Data from EGRAG’s chart suggests that the first time XRP recorded a significant three green candle formation was from Q4 2015 to Q1 2016. Notably, XRP surged 43.57% from $0.00421 to $0.00604 in December 2015.
The rally endured into the next month, with XRP increasing by a less impressive 6.06% in January 2016. The third bullish monthly candle close occurred in February 2016, when XRP rallied by 23.80% from $0.00641 to $0.00793. Following these three green closes, XRP faced resistance.
The resistance resulted in a price drop and a subsequent period of consolidation, featuring upswings and declines. XRP observed this consolidation phase for 12 months, from March 2016 to February 2017.
What came after the consolidation was a massive price surge, leading to an 8,000% increase in XRP’s price from March 2017 to May 2017. Interestingly, this 8,000% increase also resulted in another formation of three consecutive bullish monthly candles.
After the second formation of the three candle structure, XRP again dropped and faced an extensive consolidation. However, unlike the previous one, this second consolidation phase lasted only five months, from July 2017 to November 2017. XRP surged 1,506% after this consolidation.
XRP to $10 or $50
Now, XRP has recorded the third bullish three candle formation this year. The assert formed this structure when it closed September with a 0.84% increase, October with a 16.54% surge and December with a 1.05% increase.
EGRAG confirmed that this bullish setup will also result in another massive run. However, the extent of this rally will depend on the length of the ensuing consolidation. As XRP slides into the consolidation phase, it could remain there for five months or 12 months.
According to EGRAG, if XRP consolidates for only five months, it would replicate the late 2017 rally, surging by 1,506%. XRP currently trades for $0.60 at the reporting time. Rallying by 1,506% would bring the asset’s price to a value of $9.7 (~$10).
The analyst then stressed that if XRP consolidates for 12 months, the resulting rally could lead to an 8,000% increase. Should XRP surge 8,000% from its current price, it would claim a price of $49.9 (~$50). However, these projections remain uncertain and should be regarded as educational content rather than financial advice.
DisClamier: 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 opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
