Analyst Egrag advises crypto investors to stock up on XRP and relax at the beach, highlighting the absence of new lower lows amid market volatility.

In a recent post, pro-XRP analyst Egrag explored XRP’s pattern amid yesterday’s landslide dip in the crypto market. The analyst emphasized that XRP defended some of its earlier gains, avoiding a drop to the lower levels observed in July.

Notably, during the market downturn in July, XRP crashed to around $0.38, a price point last seen over a year ago. The reason for XRP retesting $0.38 was Bitcoin’s fall to the $53K price range, triggered by the German government’s dump of $3 billion in Bitcoin in July.

XRP was significantly impacted, and its reaction was exacerbated by widespread apprehension about its performance prior to the landslide fall. However, before the month ended, XRP staged a commendable comeback.

It quickly rallied to a four-month high above $0.65 in less than two weeks. XRP defended the $0.6 level into August before the onset of another bearish momentum.

XRP Shows Greater Resilience Amid Massive Dump

This time, the selling pressure in the crypto market was so massive that Bitcoin relinquished multiple support levels and broke back into the $49K region for the first time since February, following a 19% drop. 

Altcoins like Cardano, Ethereum, and Solana experienced even more pronounced declines. Meanwhile, XRP crashed from an intraday high of $0.5253 to $0.4335. This was the lowest value XRP reached yesterday before its recovery began. 

Essentially, despite the shocking dump that wiped out over $1 billion from leveraged traders, XRP did not set a lower low yesterday.

On the other hand, Cardano hit $0.2799, a significantly lower bottom compared to the initial yearly low of $0.321 set on July 5. Similarly, Solana crashed to $110.61 yesterday, establishing a new bottom from last month’s $121 level.

Given the resilience XRP exhibited compared to other rival altcoins, analyst Egrag humorously advised crypto market participants to amass more XRP tokens and relax at the beach. 

Notably, XRP set an intraday high at $0.5185 at press time and is defending its gains above $0.5.

One commenter responded to Egrag’s update by saying that the current market fluctuations are nothing to worry about in the grand scheme of things. He cautioned that the recent price bounce might be temporary. However, the commenter suggested that buying XRP now and holding it for the long term could be a profitable strategy regardless.

Notably, Egrag is among the most ambitious XRP analysts, expecting XRP to become much more valuable in the coming weeks. In various analyses, he has charted the paths XRP could follow to reach higher price points beyond the $10 range.

XRP has witnessed a dramatic collapse of 85% from its all-time high, but market data suggests there may be chances of a recovery.

Market analyst Northstar first called attention to this bearish situation. Notably, XRP peaked beyond $3 in January 2018, following an impressive surge from the $0.005 low in February 2017.

The cryptocurrency has since plummeted by 85%, trading around $0.48 at the time of Northstar’s analysis. This massive decline has raised speculation about XRP’s future trajectory, but market data indicates that the crypto asset might still boast chances of a rebound.

Notably, a long-term symmetrical triangle, identified by Northstar on the two-week chart, shows XRP’s struggle since its peak. The chart shows multiple failed attempts to break above the triangle’s resistance, ultimately resulting in a breakdown below the support line at around $0.55. 

This breakdown is critical, as it indicates an increase in the bearish momentum. The triangle’s measured move suggests a potential bearish target of $0.30 if the selloff momentum continues, marking a further decline of nearly 40% from current levels.

XRP Current Market Position

Meanwhile, on the weekly chart, a smaller XRP symmetrical triangle pattern, formed following the drop from $0.93 last July, recently saw a breakout. XRP breached the triangle’s upper trendline, reaching resistance at the middle Bollinger Band around $0.65. 

However, the recent market drop has led XRP to retest the upper trendline, now acting as support around $0.48. XRP needs to fiercely defend this support to hedge against any drop back into the symmetrical triangle.

Nonetheless, the Stochastic Momentum Index (SMI) shows a downward trajectory, indicating weakened buying pressure. If XRP fails to reclaim the $0.52 resistance, the next support levels are critical. 

Notably, the $0.4270 support, marked by the lower Bollinger Band, is a key level to watch. A breach below this could see XRP targeting $0.30, consistent with the descending triangle’s measured move.

Volatility and Market Activity

As market uncertainty prevails, data sourced by Santiment shows an interesting relationship between price volatility, active addresses, and XRP’s price. Notably, XRP experiences massive price movements, both upward and downward, during periods of increased volatility and active addresses. 

For instance, major price spikes in late 2017 and early 2018 correspond with heightened volatility and active addresses exceeding 200K. Similarly, the price drop in mid-2021 following a rally to $1.96 aligns with spikes in these metrics.

Currently, active addresses hover around 25.9K, while volatility remains moderate. This scenario suggests the potential for upcoming price swings. If volatility increases with active addresses, as seen historically, XRP could experience significant movement from the current level.

What’s Next for XRP?

Given the current technical setup, XRP could face a challenging path ahead. The six-year symmetrical triangle breakdown on the 2-week chart and one-year symmetrical triangle retest on the 1-week chart suggest bearish continuation or potential consolidation.

Key levels to monitor include the $0.52 resistance and the $0.40 support. Failure to hold these levels could validate the bearish targets, with $0.30 being a critical risk for the downturn.

However, the momentum could shift. An increase in volatility and active addresses, as indicated by Santiment’s data, could lead to price swings. If buying pressure returns, reclaiming the $0.52 level could negate some bearish sentiment. In such a scenario, XRP might aim for higher resistance levels around $0.60 and $0.70.

Analyst Javon Marks recently analyzed XRP’s price movements, suggesting XRP may soon experience significant price levels that could surpass expectations.

The market watcher presented his latest analysis on X today amid XRP’s recovery from the recent bloodbath. Marks’ chart reveals a long-term symmetrical triangle pattern, indicating potential price volatility. 

The triangle began following the drop from the $3.31 all-time high in January 2018. Notably, XRP’s price movement has consolidated within this pattern for over 2,400 days. During this period, the altcoin recorded notable lower highs and higher lows in a convergence.

Interestingly, the symmetrical triangle setup is not new for XRP, as a similar formation occurred between 2014 and 2017. This formation eventually led to a massive breakout. During that period, XRP’s price surged by over 60,000%, setting a precedent for potential future movements.

XRP Rally Could Surpass Expectations

Marks’ confidence hinges on this historical event. According to him, the recent price action has shown signs of a bullish divergence, supported by the RSI (Relative Strength Index) indicators. 

He notes that while bulls could not sustain a recent breakout attempt, the underlying patterns still suggest a bullish breakout could be imminent. Marks estimates that a conservative breakout could target levels between $15 and $18, representing a substantial increase of over 2,100% from current levels. 

However, he also hints at the possibility of a more extensive logarithmic scale follow-through. The analyst suggests such a follow-through could propel XRP’s price to more than $100, translating to a monumental 20x rise.

Drawing from his experience and past market behaviors, Marks emphasizes that the levels XRP could reach may be beyond what many can currently envision. His confidence is bolstered by XRP’s historical performance, which at the time surpassed expectations.

Current XRP Conditions and Short-term Movements

Meanwhile, in the short-term, XRP is looking to recover from the latest market collapse. At the reporting time, XRP’s price has surged to $0.5160. This level represents a 19.6% recovery push from the recent low of $0.4312.

The Keltner Channel, which measures volatility and identifies overbought or oversold conditions, shows that XRP recently dipped below the lower channel line at $0.473, suggesting an oversold condition. This typically precedes a rebound, which aligns with the observed price recovery.

The Stoch RSI, a momentum indicator, also supports this view. The Stoch RSI values indicate that XRP was oversold, with a reading of 6.79, well below the typical oversold threshold of 20. The subsequent upward movement in the Stoch RSI suggests a potential recovery phase.