XRP may be in for one last dip before the real recovery begins. According to crypto analyst Egrag Crypto, the chart shows the same pattern as in the previous market cycle: first down one more time, to the zone from 0.85 to 0.91 dollars, and then an explosive move towards 8.50 dollars. History does not always repeat itself, but the similarity is striking.
What does the analyst see on the chart?
Egrag looks at two commonly used moving averages on the weekly chart: the 21 EMA and the 50 EMA. The 21 EMA follows the price more closely, the 50 EMA looks at a longer period. Recently, the 21 EMA has fallen below the 50 EMA. That’s called a bearish crossover and it simply means that short-term momentum is decreasing.
That sounds negative, but the context makes it interesting. The exact same thing happened in the last market cycle. After that crossover, XRP fell another 17% before the final bottom was formed. What followed next was an explosive rally.
Support zone between $0.85 and $0.91
If the pattern repeats, XRP could move down one more time to the $0.85 to $0.91 zone. The analyst expects a so-called liquidity sweep there: the price briefly dips below an important support level, activates automatic sell orders from investors and then reverses.
It is a classic move in the crypto market. Painful for those who are forced to sell at that moment, but afterwards it is often the exact moment when the bottom is set.
When does this scenario become invalid?
Not every pattern repeats itself. The analyst mentions two levels to keep an eye on. If XRP ends a week above $1.80, the chance of that final dip decreases considerably. A weekly close above $2.00 would mean that the bottom is probably already there and that the decline will not come at all.
With a current price of $1.39, both levels are still a long way off. Until then, the scenario remains on the table.
Long-term goal: $8.50
Despite the potential short-term pain, the bigger picture remains bullish, according to Egrag. XRP has been moving within a symmetrical triangle for years: the price is increasingly wedged between higher lows and lower highs. At some point that pattern breaks, and when that happens the movements are historically explosive.
Based on the size of that triangle, the analyst arrives at a price target of $8.50. That is more than 500% above the current price. Ambitious, but not unrealistic for XRP. In 2017, the coin rose more than 36,000% in one year. A rally of more than 600% followed in 2024.
The lesson of this analysis: anyone who only looks at the coming weeks will see risk. If you zoom out, you will see a coin preparing for a possible breakout.
Source: https://newsbit.nl/crypto-analist-voorspelt-eerst-nog-een-keer-omlaag-dan-richting-850-dollar/
