XRP permabull Egrag has argued that a market “flush-out,” temporary price drop, would be more beneficial for XRP’s long-term health than a sudden upward spike.
He shared this view in a post to his followers on X, where he laid out his latest technical outlook on XRP.
As XRP struggles to break through strong resistance, Egrag’s take adds a more cautious voice to the growing excitement about a possible rally.
Healthy Structure Over Hype
Egrag maintains that his long-term bullish stance on XRP remains unchanged. Meanwhile, he emphasizes that the path to higher prices is as important as the destination.
To him, a 70% likelihood exists for XRP to experience one more flush-out before initiating a meaningful uptrend. On the other hand, there’s only a 30% chance that the token could pump hard in the near term, a move he warns could even lead to a strong correction.
He believes a slow, steady rise after a healthy price drop builds a stronger foundation for long-term growth.
XRP Fair Value Gap Target: $2.35–$2.40
Central to Egrag’s analysis is the concept of the Fair Value Gap (FVG), a price range that the market has yet to revisit after the rapid move to $3.66. He points to the $2.35–$2.40 range as a key area where XRP might pull back before climbing higher again.
This idea ties into the principle of mean reversion, where prices return to their average over time. Egrag believes filling this gap could help stabilize the market and form a solid bottom.
When Will This Happen?
While avoiding making firm predictions on exact timing, Egrag notes that past gap fills on the 3-day chart have taken about 129 days in the past. Based on that, a move into the $2.30 range could happen around mid-November. Still, he emphasizes that price structure matters more than timing.
The analyst is currently watching for a drop to $2.65, which he believes could act as a preliminary support level. However, his main focus is on the deeper Fair Value Gap. With XRP around $2.85 today, this calls for a 17.5% price drop.
Setting for What’s to Come
While the projected outcome could cause holders pain, it could also lead to a long-term bullish breakout for XRP.
Many retail investors are in high hopes of an XRP pump as the month of October enters, which promises to usher in ETFs. But some are now warning about a sell-the-news event where the price may fail to move substantially after the news everyone has been expecting finally hits.
Interestingly, amid the current conditions, some prominent traders have been opening massive shorts on XRP, betting millions of dollars on single trades.
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.
