Egrag, a crypto analyst, today presented his medium-term predictions for the XRP price on X (formerly Twitter). He backed up his projections with the 3-day chart and pointed out several potential price points that investors should pay attention to.
Analysis of the 3-day chart XRP/USD
Egrag’s chart, based on Binance’s three-day XRP/USDT pair, suggests that XRP is currently in the midst of a crucial retesting phase. He emphasized the current market dynamics by saying, “What is happening now is just a retest of the outbreak; the real pump is still in sight, and it will undoubtedly be epic!”
The analyst highlighted XRP’s triumphant rally from mid-July, which surpassed its original target of $0.85 and rose to a commendable $0.93, surpassing the original price target by 9.41%. Egrag’s three-day chart shows a descending trend line, which the analyst calls the ‘Final Wake Up Line’.
According to him, the break above the trend line on July 13 after the summary judgment in the lawsuit between Ripple Labs and the US Securities and Exchange Commission (SEC) was the final wake-up call for investors who were still waiting on the sidelines.
Currently, the XRP price is around $0.52. As the analyst shows in the chart, XRP experienced a trendline retest and passed it with flying colors. In particular, Egrag also points out that XRP was able to hold above the 0.236 Fibonacci retracement level at $0.4534.
This laid the foundation for the XRP price entering bullish territory at this point. However, the price is still facing the resistance zone between $0.55 and $0.60, which Egrag calls the “backbone transition”. Notably, the top of the price range coincides with the Fibonacci retracement level of 0.382. Exceeding this resistance is crucial, especially because it has caused strong resistance several times in the past.
Once this is achieved, Egrag’s medium-term XRP price targets will come into focus. As explained, he has adjusted his price targets as a result of the increase in July. Due to the 9.41% upside in July compared to his original price target, Egrag now expects XRP to rise to $1.10 (instead of $1) in an initial rally.
Egrag has also raised its price target from $5.5 to around $6, and the previous benchmark of $6.4 has been recalibrated to almost $7. He claimed:
So if we apply the same rate of increase to our upcoming goals, here’s what we can look forward to:
A) $1 * 9.41% = About $1.10
B) $5.5 * 9.41% = About $6
C) $6.4 * 9.41% = About $7
Lower price targets
Egrag’s analysis is based on different Fibonacci levels and shows potential resistance points. These are the Fibonacci 0.5 ($0.7528), 0.618 ($0.9442), 0.702 ($1.1095), 0.786 ($1.3038), 1 ($1.9664) and the Fibonacci extension levels at 1.272 ($3, 3153), 1.414 ($4.3546) and 1.618 ($6.4420) .
Overall, the analysis suggests that XRP’s upward momentum is likely to continue and build on its recent successes. The recent price rise above the analyst’s lower target indicates robust upside sentiment in the market. However, investors should remain keenly aware of the inherent unpredictable nature of the crypto market and exercise due diligence at all times.
Egrag ended his tweet on an encouraging note for the community: “XRP Army STAY STABLE, we are moving forward step by step towards our exciting goals.”
At the time of writing, XRP was trading at $0.5291.
Featured image from Shutterstock, chart from TradingView.com