cryptoglobe.com
A popular cryptocurrency analyst has recently suggested that the price of the native token of the XRP Ledger, XRP, could soon move to the $27 mark within the current market cycle, with his analysis hinging on a perceived similarity between XRP’s current price chart and historical patterns observed in 2017.
The analyst, EGRAG Crypto, pointed to a crossover between XRP’s 20-day and 50-day simple moving averages (SMAs), mirroring a similar technical indicator that preceded XRP’s breakout in late 2017, before the cryptocurrency moved to an all-time high above $3.
Back then, a 350-day price consolidation period with 49 weekly candles was followed by a dramatic surge, taking XRP from roughly $0.20 to a record high of $3.84 in less than a month in what he deemed a “rapid and aggressive price surge, akin to a rocket ship-style pump.”
#XRP 🚀 Is This Similar to 2017, or Are We Witnessing Something New?
— EGRAG CRYPTO (@egragcrypto) March 19, 2024
The historical data reveals two crosses between the Yellow Line (20 SMA) and Blue Line (50 SMA).
A) If this resembles Cycle 'A', then we could expect a rapid and aggressive price surge, akin to a rocket… pic.twitter.com/o8PVCqJP14
The analyst also noted that in an alternative scenario, the pattern might align more with the 2021 bull run, where XRP reached around $1.90, suggesting a less aggressive price increase. The price of XRP, according to the analyst, could alsobe seeing “something entirely new and unexpected.”
Despite these possibilities, EGRAG leaned towards the first interpretation, emphasizing the potential for a significant price surge due to the perceived resemblance to the 2017 pattern. He further strengthened his argument by highlighting a tenfold symmetry in XRP’s price compared to 2017.
EGRAG has as a result reaffirmed his $27 price prediction for the cryptocurrency, which has so far this year been underperforming the wider cryptocurrency market and told XRP investors to “stay steady”
Last year, in a technical analysis post, the cryptocurrency analyst suggested the price of XRP could soon see a “mega pump,” although the analyst said investors should “exercise caution.”
In the post, the analyst used a technical tool that uses moving averages and standard deviations to map out potential price movements, the Gaussian Channel, to identify support and resistance levels ahead for XRP.
The analyst noted that the “alignment of support and resistance price targets “ within the framework of the Gaussian Channel “mirrors other charts,” which adds to their significance. The analyst identified support levels at $0.50, between $0.54 and $0.55, and at $0.60.
XRP is at the time of writing trading close to the $0.57 mark after losing around 6% of its value so far this year. The cryptocurrency is down over 16% over the past week amid a wider cryptocurrency market correction.
Featured image via Pixabay.