R-Squared Value of XRP Shows Next Target Could be Epic

A well-known market analyst has insisted that the next XRP target will be epic, as XRP continues to follow his bullish structure.

This disclosure came from EGRAG Crypto, which has persistently suggested that XRP still has more room to grow in this cycle. In his latest market commentary, EGRAG reiterated this stance, calling the investing community’s attention to the R-squared value for XRP in relation to a previously highlighted regression model.

The XRP R-Squared Value Around Its Regression Model

For the uninitiated, the regression model EGRAG used is a method that helps track and predict XRP price movements over time. Essentially, it maps XRP’s past prices on a log scale and produces a trend line with upper and lower bands (set by standard deviations) that present the most likely price ranges moving forward.

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Meanwhile, the R-squared value shows how well this regression model matches the real price data. It indicates how much of the price movement can be explained by the model rather than by random chance. 

Notably, a higher R-squared, closer to 1, means the model does a good job of capturing the actual trend, showing high correlation. Meanwhile, a lower value, closer to 0, means the model isn’t very reliable in explaining what’s happening with the price. This indicates low correlation between the model and actual price action.

EGRAG has confirmed that the R-squared value currently sits at 0.84754, which means the model explains about 85% of XRP’s price movements. This is important because it confirms that XRP is following this regression model closely, making its price action highly predictable by using the model.

What XRP Target Does the Model Predict?

Interestingly, the regression model predicts some bullish price action for XRP in the near future. EGRAG highlighted this in a previous market report, revealing that XRP has the potential to reach one of three targets depending on how it interacts with the upper regression line.

Currently, XRP trades slightly above the mid-line, and a push to the upper line could take XRP to a price of $18, $27, or $200. Specifically, if XRP misses the top regression line by 45% as it did in April 2021, its top price would only sit around $18. 

However, if it perfectly hits the top line as it did in December 2013, May 2017, and September 2018, the price would sit at $27. Meanwhile, an overshoot over the top regression line, similar to what happened in January 2018, would push the XRP price to an ambitious $200. As a result, EGRAG insists the next XRP target would be epic.

This indicates that any of the three outcomes would still bode well for XRP, resulting in a 514% to 6,725% uptick from the current price of $2.93. However, EGRAG’s most referenced XRP target is the $27 price, which the analyst has consistently championed over multiple analyses. For context, XRP would need to rise 821% to hit the $27 target.