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XRP Giant Cup Formation Shows XRP Needs to Break Fib. 0.70 Level for Bullish Continuation

source-logo  thecryptobasic.com 11 November 2023 04:40, UTC

XRP is moving closer to what prominent analyst EGRAG calls the stratosphere, a pivotal trendline currently at the $1.2 price point that XRP needs to break for a massive bull run.

In one of his latest analyses of XRP’s price movements, EGRAG highlighted the formation of a “Giant Cup,” characterized by a curved line and a descending trendline the analyst calls the stratosphere.

The Giant Cup Formation

Notably, the Giant Cup formation began in January 2018 when XRP collapsed from an all-time high of $3.31. Amid the persistent drop, XRP’s 2-week candlesticks plunged lower, forming the giant cup’s lower part.

On the other hand, the declines resulted in a descending trendline, which XRP has continued to trade underneath since 2018. This descending trendline, the stratosphere, forms the cover of the giant cup.

XRP 2W Chart | EGRAG Crypto

XRP tried to break above the stratosphere in April 2021 when it rallied to $1.96. Nonetheless, a response from the bears foiled this attempt, forming another downward trendline, the “final wake-up line.” This trendline is lower than the stratosphere line.

From April 2021 to July this year, XRP continued to trade below the stratosphere and final wake-up lines. However, it broke above the final wake-up line amid the rally on July 13, which saw it reclaim $0.93.

XRP Needs to Break Above the Stratosphere

Despite conquering the final wake-up line, XRP trades below the stratosphere, currently at $1.20. Sitting at the Fibonacci 0.702 level, the stratosphere represents the final resistance point between XRP and its bull run.

Trading below the stratosphere has kept XRP within the giant cup formation. EGRAG believes XRP needs to break above this crucial resistance line to head towards a territory he calls “Valhalla,” representing a zone of explosive price gains.

In a previous analysis, EGRAG asserted that XRP was already heading to the territory above the $1 point. The analyst’s bullish conviction stemmed from the fact that XRP recently conquered and broke above the resistance at $0.65. According to EGRAG, XRP is currently heading toward $1.10 to $1.40.

Should XRP reach this price range, the asset could break above the stratosphere at $1.20. After breaking Fibonacci’s 0.70 level, XRP will face the next resistance at the FIB 0.78 level, which stands at $1.60; crossing FIB 0.78 successfully, XRP can rise to $2.3.

However, Egrag, when questioned what is your Valhalla point for XRP, he noted that Valhalla represents a price of $7 and above for XRP.

7$ and above is Valhalla

— EGRAG CRYPTO (@egragcrypto) November 6, 2023

Currently trading for $0.6630, XRP has several smaller resistance points to conquer before facing the stratosphere at $1.20. The first pivotal resistance stands at $0.6998, followed by $0.7633. Conquering these would bring the resistance point at $0.9688, representing the last opposition before $1.20.