A major technical situation is unfolding on the XRP price chart, as market analyst Egrag Crypto has highlighted a recurring historical chart pattern that previously marked the bottom of the market for the cryptocurrency. The analysis indicates that this critical pattern, known as the 5D Bottoming Blueprint, is also more likely to be a renewed upward trend for XRP after major lows. Its return is seen as a potential signal that XRP’s long bear phase may be coming to an end, even as the cryptocurrency continues to struggle bearish headwinds and price volatility.
XRP Price Repeats Historical 5D Bottom Pattern
On March 29, Eggag Crypto declared on final phase of the long-term correction phase. According to the analysis, the 5D Bottoming Blueprint is defined by two key phases. The first occurs when the 21 Exponential Moving Average (EMA) crosses above the 200 EMA. Afterwards, a sharp corrective pullback occurs, marking the price bottom of XRP.
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In mid-2022, the exact pattern appeared on the XRP chart. The 21 EMA crossed the 200 EMA and was later accompanied by a significant price correction of around 14.66%. After the correction played out over about 4 bars on the 5-day chart, which translated into 20 calendar days, XRP set its bottom of the market. From that low point, the cryptocurrency’s bearish phase ended and the price began a sustained uptrend to new highs.
Although The analyst noted that XRP’s 21 EMA has already crossed the 200 EMA. The cryptocurrency has also undergone a 14% correction, matching its 2022 decline.
Currently, XRP’s bar count matches the same four-bar historical pattern, suggesting the cryptocurrency could see a potential price bottom within 20 calendar days. Egrag Crypto has marked the key decision window on the map on April 16. The key level to watch is around $1.15, which is the primary low XRP’s continued corrective move.
Egrag Crypto has also highlighted $0.93 as another potential support level, which could serve as the next downside target if the price fails to hold above $1.15. The chart shows the possibility of a deeper correction, where XRP could potentially set a price floor near $0.73 if it falls below $0.93. If bearish momentum continues, XRP could fall even further towards the white trendline at the bottom of the chart, around $0.42.
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XRP sees bullish reversal after price bottom
After establishing a market bottom, Egrag Crypto expects XRP to take off a bullish reversal. He predicted that the cryptocurrency could first regain the $1.60 level, which would officially mark the end the correction phase and the beginning of a renewed uptrend.
After this, the analyst expects XRP to rise again to $2.05. A clear break above this level would serve as the confirmation signal that XRP’s broader expansion phase could be underway, opening a potential path to $3.02 and higher.
Featured image created with Dall.E, chart from Tradingview.com