Prominent market analyst EGRAG recently emphasized that XRP is in a strong position, predicting its next move if Bitcoin (BTC) collapses from here.
EGRAG noted this while updating his outlook on an earlier price analysis. Notably, the analyst forecasted that XRP was on the verge of recording a massive rally which could see it skyrocket to $5 in the next 90 days. This prediction was daring, considering XRP’s $0.5624 price at the time.
XRP in a Strong Position
During EGRAG’s initial projection, XRP changed hands below the pivotal $0.60 price territory. The asset had collapsed with the broader market on Jan. 3 amid a Bitcoin price slump triggered by bearish reports on the spot BTC ETF outlook.
Despite slumping below $0.60 and having challenges with reclaiming the price point, XRP looked attractive to EGRAG. Shortly after his initial analysis, XRP surged to a high of $0.6240 five days ago. However, it collapsed when Bitcoin plunged with the rest of the market on Jan. 12.
XRP has recorded two days of price crashes this year, a 6.77% drop on Jan. 3 and a 5.32% slump on Jan. 12. Each of these price crashes was triggered by a Bitcoin collapse. EGRAG’s latest analysis suggests that this trend will continue but at a much slower pace.
According to him, XRP is currently in a strong position. However, the analyst emphasized that the token would not go unscathed if BTC experiences another drop.
Interestingly, former BitMEX CEO Arthur Hayes previously predicted a massive correction for BTC following the ETF approval.
Possible Impact of a BTC Dump
XRP has always been one of the biggest victims of a Bitcoin crash. Nonetheless, in his latest disclosure, EGRAG believes any upcoming drop for Bitcoin would impact XRP’s price, but he is confident XRP would display more resilience than other altcoins.
Whether this drop occurs or not, the analyst remains optimistic about XRP’s long-term prospects. Data from his charts show that XRP currently trades around its macro support line.
EGRAG has leveraged this support level to predict a looming bull market bounce. A bull market bounce is a brief recovery in prices within a larger upward trend.
It refers to a price surge after a period of decline, reflecting a potential resurgence in investor confidence. EGRAG believes the first wave of this looming bull market bounce could last for several months.
According to his forecasts, it would feature a sustained upward trend for XRP, leading to the coveted $5 target. This would mark a 770% surge from XRP’s current price of $0.5742.
The crypto asset currently trades above its 200-day EMA ($0.5718), indicating bullish momentum in the long term.
This pattern adds weight to EGRAG’s forecast of a long-term bull run. However, in the short term, XRP remains bearish, signaled by its daily MACD and 50-day EMA position.