Market analyst EGRAG reintroduces his XRP megaphone pattern, expecting the structure to push prices to two-digit figures above $27.

The reintroduction comes on the back of the ongoing market uncertainty. Notably, despite this uncertainty, XRP has demonstrated resilience over the past few weeks. Just last weekend, the crypto asset rallied nearly 10% on Saturday before facing a mild pullback.

Amid a red Monday within the broader market yesterday, the pullback deepened, with XRP collapsing by over 6.6% to a low of $2.33 within eight hours. Interestingly, as the market recovered from this flush out, XRP is leading the pack, up 5.17% in the past week.

XRP’s Megaphone Pattern

EGRAG’s latest analysis comes amid this recovery effort. As XRP rebounds above the $2.5 level, the market analyst leveraged a 1-month chart to highlight the formation of what he calls the “megaphone pattern.” For context, this structure refers to a large broadening pattern.

The analyst first highlighted the XRP megaphone pattern on the 25-day chart in March 2023. At the time, XRP changed hands at $0.3895. According to EGRAG, this pattern is quite efficient, boasting a 70% win ratio, but is more effective on longer timeframes.

In the latest disclosure, EGRAG emphasized that the megaphone pattern features higher highs and higher lows, suggesting that the bulls are generally in control amid an increase in volatility. 

Typically, this structure boasts three major bottoming phases and three major price upswings. Data from the chart indicates that XRP formed the first bottom at a floor price of $0.00058 in September 2014. Notably, the altcoin recovered from this low with the first upswing, hitting a peak of $0.0306 in December 2014.

After this top, a correction ensued, pushing prices to the second bottom of $0.003 in January 2017. Again, XRP recovered from this bottom, soaring to a new peak of $3.5 in January 2018, representing its all-time high. This marked the second upswing.

Following this all-time high, another major pullback materialized, lasting for seven years and culminating in a third bottom of $0.3899 in July 2024. Now, XRP has engineered a rebound which EGRAG sees as the third upswing.

XRP Now Navigating the Third Upswing

He emphasized that during this third upswing, XRP price is expected to breach the previous top of $3.5 and not slump below this level again regardless of the pullback that ensues. 

Interestingly, the analyst leverages Fibonacci retracements to set three targets for XRP as it navigates this third upswing. 

The first price target lies on the Fib. 1.272 mark, representing a price of $8.15. A push above here would allow XRP aim for the second target at $13.3 (Fib. 1.414). Meanwhile, EGRAG sees a third target of $27.05, aligning with Fibonacci 1.618. 

Currently, XRP trades for $2.54 and would need a 964% increase to claim the $27.05 target. Notably, in the previous analysis, EGRAG set a more ambitious target of five digits. However, he chose not to mention his ultimate target this time, stressing that he does not wish to “mislead newbies.”

Meanwhile, EGRAG emphasized that to confirm the megaphone pattern, traders should monitor volume indicators for an increase. In addition, a confirmation would also come up with XRP persistently trading above the breakout point.

An XRP community pundit makes a case for an XRP price rally to an ambitious five-digit figure, citing possible catalysts.

Chad Steingraber, a game developer and prominent voice in the XRP community, outlined a vision for XRP’s potential to reach $20,000 per token. In his commentary, Steingraber highlighted several factors he believes could drive this dramatic price increase.

11 – This is where it gets interesting because the road to $20K #XRP involves PRIVACY.

They've been very clear and honest with us –> #XRP was never meant for public retail trading.

We were the pitchers in warm up practice before the game begins.

Ready for the Big Leagues?

— Chad Steingraber (@ChadSteingraber) August 18, 2022

XRP Deflationary Supply

Steingraber called attention to XRP’s capped supply of 100 billion tokens and its mildly deflationary design. For context, the XRP Ledger permanently burns a small amount of XRP with each transaction, steadily reducing the total supply, albeit at a slow rate.

5 – Now for those new to #XRP let’s establish some facts:
A limited supply of (less) 100Billion

On each ledger transaction, destroys or “Burns” a small portion of #XRP to validate its transfer (Deflationary)

Can issue any other asset on the Ledger (IOU's)

— Chad Steingraber (@ChadSteingraber) August 18, 2022

He noted that much of the current circulating supply—now around 57 billion tokens—is available for public trading, but some of it has been permanently lost, further limiting accessibility. This shrinking supply, in addition to increased demand, could create conditions for a price surge, he argued.  

XRP Institutional Adoption and Private Ledgers  

One of Steingraber’s central claims is that XRP will become a reserve asset for banks, akin to gold. He suggested that financial institutions like Bank of America and JPMorgan could issue private digital currencies, such as BOAcoin or JPMorganCoin, on private XRP Ledgers. 

These coins, possibly backed by XRP, would enable banks to conduct internal and cross-border transactions securely and privately, he said. According to Steingraber, this setup would ensure banks rely heavily on XRP while keeping transactions off public ledgers, creating a demand spike.  

Steingraber also discussed the potential role of institutional liquidity providers (ILPs), which he described as intermediaries facilitating transactions between banks. He claimed these ILPs would hold large reserves of XRP and various bank-issued coins, enabling seamless exchanges without exposing counterparties to risk. 

For instance, if Bank of America needs to transfer funds to JPMorgan, XRP would act as the intermediary currency, facilitating the transfer through ILPs.  

Possible Supply Shock  

Interestingly, Steingraber warned that banks could eventually deplete the public supply of XRP. He speculated that financial institutions and ILPs might engage in a digital “arms race” to acquire XRP, potentially leading to a frenzy of institutional buying. 

21 – Think of it as a digital arms race where every bank, every IGLP will hoard #XRP to increase their balance sheets. The majority of #XRP escrowed at Ripple will never see the light of day. When they run out of OTC (Over the Counter) options, what’s next?

The Public Supply.

— Chad Steingraber (@ChadSteingraber) August 18, 2022

According to him, this could wipe out the public supply on exchanges within hours, leaving retail investors sidelined as prices soar.    

Expanding his analysis, Steingraber pointed to the global financial system’s vast size, estimating the total U.S. dollar money supply at $40 trillion. Adding the global banking sector and derivatives market, he argued that demand for XRP could grow exponentially. 

He suggested that the public supply might shrink to as low as 21 million tokens—similar to Bitcoin’s hard cap—further boosting its value. At press time, XRP trades for $2.35, needing an 850,963% increase to reach $20,000. 

While Steingraber’s arguments are thought-provoking, they rest on several assumptions that warrant scrutiny. For one, banks adopting XRP as a reserve asset on a global scale would require widespread regulatory clarity and institutional trust in the technology.

As the XRP price struggle continues, analyst Egrag has highlighted a symmetrical triangle pattern as the key to unlocking XRP’s next price move.

According to Egrag, XRP’s path to $3.75 depends on whether the token can hold the upper boundary of this crucial formation. In his analysis, Egrag noted that the $2.75 level, the top edge of the formation, is now comparable to XRP’s historical $0.75 resistance.

Notably, as reported earlier, XRP faced rejection at $0.75 at least three times in 2024 before ultimately surpassing it. In the current scenario, Egrag highlighted XRP’s strong recapture of $2.75 as the springboard for further ascent.

“If the top edge holds, I can confidently say that $3.75 and potentially higher are on the table,” Egrag stated.

Resistance to XRP Road to $3.75

At present, XRP is trading at $2.43, down by 4.32% today. Breaking above $2.75 requires a 13.2% price rally. Over the weekend, XRP approached this crucial target, reaching a new yearly high of $2.58 before the bears took control.

Meanwhile, in the event of a successful breakout, XRP could surge beyond $3.75, nearing its all-time high, with market sentiment further fueling the rally.

However, the analyst noted that downside risks remain for XRP. Specifically, a failure to hold key support levels could push XRP down to bearish targets of $2.07. Notably, this level coincides with the bottom of the currently forming symmetrical triangle on XRP’s price pattern.

Additionally, the analyst mentioned the possibility of further declines to as low as $1.63.

XRP Could Rally to $4 and $8 Soon

Despite this downside risk, XRP’s journey toward new heights continues to gain momentum. A separate commentary by crypto analyst CRYPTOWZRD highlighted this prospect in a strikingly optimistic tweet.

Drawing parallels to XRP’s meteoric rise in 2017, the analyst pointed out that the token has successfully flipped a significant resistance level into support. In his view, this critical technical move has set the stage for what could be an explosive upward trajectory.

Essentially, CRYPTOWZRD’s analysis suggests XRP’s ongoing price action mirrors its past, where a similar breakout led to a massive surge. With the token now trading comfortably above its flipped support, the analyst predicts a rally to $4, followed by a further climb to $8.