A new analysis of the cryptocurrency XRP points to potential levels for upcoming growth. Crypto analyst Egrag Crypto highlights key price thresholds and bases its findings on historical macro cycles.
Macro Cycle Structure and Historical Context
Egrag's analysis divides XRP's price history into three macro cycles, each marked by clear patterns. The first cycle, starting in 2013, saw a sharp rise followed by a correction. The second cycle exhibited a particularly bullish structure, with XRP touching the 'blue ribbon' before reaching a new high. Currently, in the third cycle, Egrag believes that the 2021 price action represents only a mid-cycle top.
Technical Breakout: Role of 9-SMA and Bullish Pennant
On the monthly chart, XRP is showing strength as the price bounces off the 9-period Simple Moving Average, which often serves as dynamic support. XRP has broken out of a bullish pennant, strengthening the case for an upward trend. However, the $3.65 level remains the critical resistance: a close above this level would mark a significant breakthrough.
Price Targets: Conservative and Aggressive Projections
If XRP closes above $3.65, Egrag lays out two scenarios: an aggressive target of $23 and a more conservative target ranging from $12 to $16. These projections are rooted in the measured-move technique, which calculates potential gains based on the height of the pennant.
The analysis of XRP indicates potential growth towards double-digit values, with the $3.65 level serving as a critical threshold for future price movements. The historical context and technical indicators provide a unique rationale for expectations of further growth.
