The XRP price has been languishing in a protracted consolidation phase recently. Yet, a recently presented technical forecast by chart specialist Egrag Crypto suggests an impending shift in this trend may be on the horizon. The 5-day XRP/USD chart shared by Egrag suggests a potential price breakout, with a long-term price target above $22.
Egrag’s commentary is vivid and emphatic: “XRP: IT IS BREWING: The chart for XRP is tightening up like a pressure cooker ready to blow! An eruption seems inevitable, and the anticipation is rising faster than ever. XRP Army STAY STEADY, The pressure is mounting, and it looks like something massive is about to break loose!”
XRP Price Breakout Is Brewing – Here’s When
The chart features a symmetrical triangle pattern. This pattern in technical analysis often represents a consolidation period preceding a breakout. Since early 2017, the XRP price has been fluctuating within these converging trend lines, suggesting a tightening range that typically precedes significant price movements.
Moreover, Egrag Crypto points to a number of Fibonacci retracement levels. According to the chart, these levels are poised to act as key resistance points. The most immediate level to watch is the 0.5 Fibonacci level at approximately $0.7579, followed by the 0.618 level at around $1.1150. The chart indicates a bullish scenario where the price could break past these levels, aiming for a target at $1.9704, corresponding to the 1 Fibonacci level.
Egrag also presents two possible scenarios for the price breakout from the symmetrical triangle. In the first scenario, he anticipates the XRP price could break out of the pattern around February 10, requiring a breach above the 0.5 Fibonacci retracement level. This move would pave the way for targeting the $1.1150 level, expecting strong resistance there and a subsequent retest of the breakout level, potentially setting up for a parabolic rise into 2025.
Alternatively, Egrag suggests a scenario where the XRP price initially declines towards the lower trend line. If the support holds, the price could ascend towards the upper trend line, with a breakout expected around July 4, 2024, at the 0.5 Fibonacci level. Following this, the 0.702 Fibonacci level at $1.1150 would act as a local high before a retest of the breakout from the symmetrical triangle occurs, potentially establishing the conditions for a massive bull run.
In both scenarios, the medium-term target would be the 2021 high at $1.9704, followed by the $3.7148 level, corresponding to the all-time high of XRP. In price discovery mode, the 1.618 and 2.272 Fibonacci extension levels are identified by Egrag as long-term goals, standing at $6.41 and $22.39, respectively.
At press time, XRP traded at $0.6335. On the daily chart, the 0.382 Fib retracement level at $0.6379 is currently the most important resistance to overcome in order to build up new momentum.
Featured image from iStock, chart from TradingView.com
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