Market analysis by EGRAG Crypto has indicated a completed W pattern on XRP’s price chart, hinting at potential significant upward movement. Price targets established by the analyst are $15, $22, and $40 starting from the current price of around $2.21.
Formation of XRP's W Pattern
The W pattern began forming after XRP’s peak in January 2018 at $3.8, followed by a steep drop to $0.1050 in March 2020, which created the first bottom of the double-bottom structure characteristic of W formations in technical analysis.
Current Consolidation and Retest
The cryptocurrency market surge in November 2024 allowed XRP to complete the W formation by breaking above the resistance level. However, the token encountered selling pressure at $3.4 in January 2025, leading to the current consolidation phase. XRP has traded within a $2.0 to $2.3 range for the past four months, indicating a retest of the breakout level.
Profit-Taking Strategy
EGRAG's analysis suggests the $2.0 support level has held during this retest phase, confirming the validity of the breakout. The analyst has established three price targets starting at $15 and extending to $40. However, he warns against trying to time the market top precisely, recommending a graduated profit-taking strategy.
The current situation with XRP demonstrates the potential for significant growth, but it is essential to consider the risks associated with trying to time the market accurately. A gradual profit-taking strategy can help manage risk while allowing participation in potential continued upward movement.
