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Skilled crypto chartist EGRAG sustains his bullish outlook for XRP, projecting an initial 500% surge for the crypto asset once the ongoing correction is completed.
The latest analysis came as an update to a previous post on XRP’s potential trajectory. This previous report, published last December, forecasted an imminent price surge for XRP, leveraging an inverted chart to sarcastically dub this expected rally an “XRP crash.”
While EGRAG actually referred to an upcoming price explosion, the chart also indicated that the analyst expects XRP to actually face a correction before witnessing this price explosion. At the time, XRP was changing hands at $0.6353 amid a steady but slow uptrend.
XRP Retests Supporting Trendline
As this uptrend endured, the chart featured a lower trendline, which sloped upward, representing XRP’s support levels at varying periods. Notably, this trendline sloped up because XRP has continued to find support at higher lows.
Nonetheless, XRP has repeatedly retested the trendline after suffering price dips over the past three years. The first time XRP dropped to hit the trendline was in December 2020, when it slumped to a low of $0.17. It then retested the trendline amid a drop to $0.2870 in June 2022.
XRP again retested the supporting trendline in January 2023 amid a slump to $0.30. EGRAG’s December 2023 analysis forecasted that the crypto token would record another drop to retest the support at the trendline before witnessing a price surge.
Interestingly, this forecast has materialized. Recall that XRP saw a massive collapse to $0.50 on Jan. 3 as the broader market slumped. Despite staging a recovery, the asset recorded another drop last Friday amid Bitcoin’s retracement.
This correction has brought XRP down to the trendline’s support level, as the asset currently changes hands at $0.5650. The latest retest would mark the fourth time XRP is dropping to hit the support at the trendline. EGRAG’s chart shows that this pattern has played out once in the past.
XRP Could Rise 500% to $2.8
Data confirms that XRP made similar moves from June 2014 to December 2017. The asset recorded four different slumps which resulted in retests of the supporting trendline. However, after the fourth retest, XRP rallied to an all-time high of $3.31 in January 2018.
EGRAG believes this same trend is about to play out. Nonetheless, the analyst expects an initial 500% rally once the ongoing correction ends. According to him, this 500% surge, which would bring XRP to the $2.8 price territory, represents the start of a much bigger rally.
Meanwhile, the XRP correction has endured as the broader crypto market remains at the mercy of the bears. XRP trades for $0.5650, with a 0.44% drop this morning. The token has seen a 5.7% increase in trade volume over the last 24 hours to $922,638,635.