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XRP is currently looking to breach the “Valhalla Gateway” identified by market analyst EGRAG at the $2 threshold amid multiple monthly closes below the 21 EMA.
Amid the recent market uptrend that has seen XRP retest the $0.60 level, EGRAG took to X to update his outlook on the crypto asset. The market analyst called attention to historical patterns indicating that XRP could be on the verge of breaking the “Valhalla Gateway.”
Notably, details from the analysis suggest that the Valhalla Gateway refers to the pivotal price threshold that XRP needs to breach to start registering massive price surges to more substantial heights.
XRP’s Bearish Closes Below 21 EMA
The analyst has set the gateway at the $2 price. In his first analysis, he identified a historical pattern that signals an impending push from XRP to breach the price level. This pattern concerns the monthly chart’s 21 exponential moving average (EMA).
#XRP: Strong & Bullish Monthly Closes with 21 EMA:
Simplicity often reveals the most profound insights in analysis. 🧐
Historical data shows that #XRP typically experiences several monthly closes below the 21 EMA before a significant price increase, as illustrated in the chart… pic.twitter.com/SELAy5qkNy
— EGRAG CRYPTO (@egragcrypto) March 1, 2024
According to EGRAG, XRP usually records several monthly closes below the 21 EMA before it eventually witnesses a substantial price increase. The first time this happened was in 2016-2017 when XRP saw five consecutive monthly losing candles from October 2016 to February 2017.
With these losing candles, XRP consistently recorded several closes below the 21 EMA on the monthly chart. Following this bearish pattern, XRP eventually surged to an all-time high of $3.31 in January 2018.
The pattern resurfaced two years later, with XRP witnessing another set of bearish monthly closes below the 21 EMA from March to October 2020. In a move similar to the 2017 price action, the crypto asset staged a rally after the bearish pattern, rising to $1.96 in April 2021.
Notably, XRP has again recorded a series of monthly closes below the 21 EMA, with the latest pattern starting in July 2023. EGRAG believes this batch of bearish closes, like previous batches, signals an imminent price surge that could help XRP breach the Valhalla Gateway at $2.
XRP Ultimate Target Set at $242
In a subsequent analysis, EGRAG stressed the importance of the Valhalla Gateway, emphasizing that the initial gateway stood at the $0.025 price territory. XRP breached the $0.025 gateway in April 2017 amid the uptrend that began a month back.
#XRP: The Gateway to Valhalla at $2 will open soon:
By leveraging the historical patterns of previous percentage moves, we can anticipate significant moves in the near future. Previously, #XRP surged through the gate at 0.025c, marking a crucial milestone.
Now, $2 stands as the… pic.twitter.com/15PX5YIj03
— EGRAG CRYPTO (@egragcrypto) March 1, 2024
The asset rallied by 511% to breach the gateway, according to data from EGRAG’s chart. Following the breakout, XRP staged its historic price run to the current all-time high value.
With the new gateway now at $2, EGRAG believes XRP could surge 500.98% from its current price to breach this level. The asset would then flip the $2 zone to stage more substantial rallies to an initial target of $27.3 before pushing forward to the ultimate $242 price target.