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XRP is currently caught between two pivotal price levels, the 21 EMA and the 55 MA, but top analyst EGRAG believes the token could skyrocket by 7,000% following a breakout from this phase.
EGRAG disclosed this while addressing XRP’s current price position, indicating his confidence in the asset amid the slow growth rate. Notably, despite rising 3.39% on the back of the Bitcoin (BTC) rally, XRP has not recovered $0.60, as it currently changes hands at $0.5729.
XRP Trapped Between 21 EMA and 55 MA
The analyst revealed that XRP’s seemingly slow upward momentum is attributable to a conundrum the asset faces. EGRAG called attention to the 2-week chart, where he identified that XRP had been trapped between the 21 Exponential Moving Average (EMA) and the 55 Moving Average (MA).
#XRP Stuck between 21 EMA & 55 MA, Potential for 7000% Breakout:
Don't be misled by the complexity of the chart below; it presents a potentially life-changing opportunity.
Zooming IN:
On closer view, #XRP's 2-week candle appears to be caught between the 21 EMA and 55 MA. The… pic.twitter.com/kePKSEUQsm— EGRAG CRYPTO (@egragcrypto) February 15, 2024
According to him, this current position is pivotal for the crypto asset’s next direction, as it could lead to a drop to $0.45 or a rise toward $0.60. He revealed that closing above $0.60 would mark a decisive move for XRP, as such a close would take the token above the 21 EMA.
With such a push, XRP would surpass the local resistance level, laying the foundation for a massive surge that EGRAG dubs the “Mega Move.” The analyst emphasized that this mega move is a price breakout that market participants would only experience once in a lifetime.
He outlined three features of the mega move that make it an interesting development. One of these features is the fact that XRP would complete an ongoing W formation if it records this move. Secondly, it would lead to the complete formation of an ascending triangle pattern.
EGRAG disclosed that this mega move could push XRP’s price up by as much as 500%, potentially culminating in a rise to $2.2. However, the analyst believes this lofty $2.2 price target is only the foundation that would lead to more substantial XRP gains.
A Potential 7,000% Surge
He predicts XRP will ultimately surge by 7,000% from the $2.2 price. Such a massive rally would result in an XRP price of $139.1, marking a new ATH and representing a 4,112% increase from its current ATH of $3.3.
Nonetheless, EGRAG’s forecasts are not without basis. The analyst cites historical context for his predictions, calling attention to a similar pattern during the 2017 bull run. Interestingly, XRP was also stuck between the 21 EMA and 55 MA during the pre-bull run phase of 2017.
As a result, the asset struggled to catch up with the market, similar to its price movements in this cycle. However, after staging a breakout, XRP first recorded a price surge to $0.0302 before skyrocketing 7,000% to the $2 threshold.
EGRAG sets this $2 level as the point to break before the 7,000% surge. Meanwhile, XRP is witnessing growing market interest as trade volume spikes 28% over a 24-hour timeframe to $1,832,555,153 ($1.83 billion), making it the seventh largest asset by 24-hour volume.