XRP could engineer a significant rally if it clears a key resistance level, according to an analysis by the notable crypto analyst EGRAG.
In an updated analysis on X, the market analyst asserted that XRP could be gearing up for a substantial move, potentially reaching as high as $7.5, provided it successfully overcomes immediate hurdles.
XRP Trades Within Triangular Pattern
Currently, XRP is trading within a compressed range, with the price hovering around $0.60. Atop this range is what EGRAG refers to as the “Genuine Wake-Up Line,” an important resistance level currently at $0.64.
The price action around this line is important, as a weekly close above $0.64 could signal the start of a new bullish phase for XRP.
EGRAG suggests that XRP’s current position within a larger triangular pattern, which spans multiple years, indicates coiled spring ready to launch. The “Atlas Line,” which previously served as a support level, was breached, leading to a bear trap.
This false breakdown shook out weaker hands, but XRP’s resilience in recovering and holding above the $0.55-$0.60 range is a positive sign. The recovery shows that the market has absorbed the selling pressure and is now building momentum for the next move.
Meanwhile, EGRAG also called attention to the formation of a white triangle pattern which captured the highs from 2021. This pattern indicates a period of consolidation, where the price is becoming increasingly compressed.
Notably, a breakout from this pattern, particularly above the $0.64 level, could lead to a rapid ascent towards $1.5.
A Potential $7.5 Target
The analyst’s report further spotlights a broader yellow triangle that spans several years. The triangle formation reveals that XRP is on the verge of a much larger move, with a potential target of $7.5.
This target is derived from a Fib 1.618 extension level at $6.4. The $7.5 target would mark a significant upside from current levels. This is a testament to XRP’s potential if it can sustain a breakout above the critical $0.64 resistance.
Meanwhile, EGRAG also noted the possibility of retests along the way. After potentially reaching the $1.3-$1.5 range, XRP might pull back to retest the breakout point. Such a move would be a healthy development, as it could solidify the breakout and form a solid foundation for the uptrend.
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