EGRAG, a prominent crypto analyst, has presented a worst-case scenario for XRP during this current bull run, predicting potential price targets for the altcoin.
In a post on X, EGRAG shared two approaches based on historical patterns and technical analysis, showcasing two charts that support his projections. The analysis comes amid XRP’s price collapse amid the broader market downturn.
A Rebound From SEC-Related Drop: Target of $5 to $6
EGRAG first compared the current setup to December 2020, when XRP faced a sharp drop due to the SEC lawsuit. However, despite this setback, XRP managed to make a remarkable recovery, experiencing a 10X surge from the bottom.
In a similar scenario, should XRP face another downturn after the SEC’s appeal, there could be a rally afterward, which could see it rise to a range of $5 to $6. The Fibonacci 1.618 level sits at $6.5, indicating that XRP could reach this level in a bullish extension.
Notably, XRP has already witnessed a drop triggered by the SEC’s appeal notice. Following the development, XRP collapsed 9%, culminating in a 19% slump in four days. The accompanying chart shows the price reacting to various support and resistance levels, with the $0.52 support recently holding firm.
A key resistance is the $1.97 level, aligning with the 0.702 Fibonacci retracement level. This level is crucial, as a break above it could lead XRP toward higher targets of $3.51 and beyond. The Fibonacci 1.0 level at $3.514 acts as a mid-range target that XRP must break through to head toward its higher targets.
The Crypto Basic also confirmed this market condition, noting that XRP could clinch $6 if it recovers like in December 2020 when the SEC first filed the lawsuit. EGRAG believes that this worst-case scenario can still lead to positive outcomes for holders of XRP even with unique regulatory hurdles.
Bitcoin’s Influence on Altcoins
The second approach EGRAG used focuses on Bitcoin’s price movements. In the 2021 bull run, Bitcoin reached a high of $68,000, while XRP managed to peak at $1.96.
Drawing from this correlation between Bitcoin’s price and XRP’s performance, EGRAG projects XRP’s possible movements if Bitcoin experiences similar gains in the next cycle.
If Bitcoin reaches a peak of $74,000, a moderate rise from its previous all-time high, XRP might see a price target of $2.31.
Meanwhile, should Bitcoin reach more ambitious targets between $80,000 and $100,000, XRP could correspondingly rise between $2.88 and even higher, depending on market momentum and overall sentiment during the cycle.
At press time, XRP trades for $0.5296, having recovered by a meager 0.70% over the past 24 hours. While this rebound is not substantial, it confirms that XRP has found robust support at $0.52 and the price is starting to stabilize following the massive crash from the SEC’s appeal notice.
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.
