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Renowned analyst EGRAG has made a bold prediction regarding $XRP, suggesting that the asset could rally to $3 or $4.5 following the breakout and retest of a multi-month trendline.
Taking to X, EGRAG shared points from a technical analysis of $XRP’s Weekly Volume Profile Visible Range (VPVR) chart, shedding light on the asset’s potential future trajectory.
According to the analyst, two crucial markers stand out within the VPVR: the Value Area High (VAH) and the Low-Value Area (VAL). These two areas are significant points of interest for $XRP on its journey to greater heights.
He noted that VAH signifies the highest price level within the 70% total value area, while VAL represents the lowest price within this range. Presently, VAH rests at approximately $0.55, signifying a significant resistance level, while VAL hovers around $0.14.
EGRAG’s analysis paints a bullish picture for $XRP, as he asserts that the asset broken free from a multi-month trendline also successfully retested the breakout. He believes this retest sets the stage for a potentially substantial upward movement in $XRP’s price.
Notably, this multi-month downward trendline formed when $XRP plummeted from the $1.96 high in April 2021. The trendline persisted until July this year. $XRP broke above it on July 13 following the lawsuit victory. However, amid the correction, the asset has now retested the trendline.
The VAH, situated at $0.55, rests above this trendline. EGRAG believes $XRP needs to solidify a position above VAH. He also emphasized that surpassing the $1 mark in weekly candle closures carries structural and psychological significance for $XRP.
$XRP Could Hit $3 or $4.5
The analyst directed attention to a yellow trendline on the chart, which he believes could pose a formidable challenge in $XRP’s future journey. He refers to this trendline as the next macro resistance point for $XRP.
Data from the chart shows that $XRP’s upcoming rally would hit a barrier at this yellow trendline. According to him, the longer $XRP takes to establish sufficient grounds for the rally, the greater its potential value when the rally does come.
Interestingly, should $XRP engineer the upcoming rally sooner, it could face the next macro resistance at $3, representing the next hurdle to the rally. However, if $XRP takes longer to rally, the next macro resistance would stand at $4.5.
EGRAG addressed the $XRP community, urging them to stay resolute. He pointed out that the next time $XRP closes above $1 might indicate the end of $XRP trading below $1 monthly. With $XRP’s current value at $0.5227, hitting $4.5 would necessitate a 761% rally.