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$XRP has now slipped to a position within the Gaussian Channel where the best risk/reward appears.
$XRP remains under bearish pressure as the broader crypto market continues to decline. At press time, the asset had fallen to $1.11, bringing its total loss for June to 16.39%.
However, despite this weakness, well-known market analyst EGRAG Crypto believes $XRP may have reached an important technical level.
According to his latest analysis, $XRP has retested the lower boundary of the Gaussian Channel on the 2-week chart. Notably, this level has historically provided attractive buying opportunities before major price rallies.
$XRP Returns to a Historically Important Zone
EGRAG’s chart shows that $XRP has again moved to the lower end of the 2-week Gaussian Channel. Considering previous market cycles, the analyst sees this area as one of the best risk-to-reward zones for investors.
However, $XRP’s upside targets would depend on how it interacts with a central line running through the Gaussian Channel. EGRAG called this line a major dividing point between accumulation periods and profit-taking phases.
Historically, $XRP has traded in periods featuring fear and opportunity while below this line. In contrast, once the asset moves above it, the market has often entered a phase of strong expansion and massive gains.
EGRAG leveraged this historical behavior to present two potential price targets for $XRP during the next major move higher.
Historical Trends Suggest Possible $XRP Move to $8
The analyst based his projections on $XRP’s previous performance relative to the Gaussian Channel’s central line. According to EGRAG, one major cycle saw $XRP rise about 330% above the central line, while another cycle recorded gains of roughly 200%.
When he averaged these two historical moves, EGRAG arrived at an expansion rate of around 265%. Applying this figure to the current market structure produces an upper target close to $8.
The analyst stressed that this projection is not based on market excitement or speculation. However, it comes from $XRP’s historical tendency to secure massive gains after reclaiming the central line.
Conservative Outlook Still Points to $5.7
EGRAG also presented a more conservative outlook in case $XRP fails to match the strength that it displayed in earlier cycles.
In this situation, the analyst assumes that $XRP would achieve only 60% of the gains recorded during previous expansions. Since one prior cycle delivered a 200% move above the central line, achieving 60% of that performance would result in an increase of approximately 120%.
Based on this calculation, EGRAG identified $5.7 as a conservative price target. Meanwhile, the average-cycle projection still sits near $8. According to the analyst, he bases both targets on historical data and $XRP’s previous expansions above the central line.
$XRP Investors Should Consider Early Positioning
Speaking further, EGRAG noted that investors should focus on accumulating $XRP near the lower boundary of the Gaussian Channel while waiting for the asset to reclaim the central line. Once $XRP moves decisively above that level, investors may consider taking significant profits.
Although $XRP currently remains in what EGRAG calls an uncomfortable zone, history shows this area often offers the most favorable risk-to-reward setup.
The analyst believes investors should position themselves before broader market participation returns instead of trying to identify the exact market bottom or chasing rising prices.