XRP might be gearing up to embark on a rally that could potentially result in a $50 price, according to expert analysis from Egrag.
XRP’s attempted breakout met stern opposition from the bears yesterday. The asset surged to a 2-month high of $0.5658 before facing fierce resistance. With XRP now back to the $0.51 level, Egrag, a skilled chartist, emphasizes that it is still in an accumulation phase. However, a potential rally to a region he calls “Valhalla” could result in an ultimate price of $50.
Egrag disclosed this while citing findings from an XRP chart on the weekly time frame. The analyst leveraged a color code indicator to assess XRP’s movements.
#XRP A color code signal indicates the path to Valhalla:
Currently, we remain in the accumulation zone until we break through the lower yellow region. Conviction is needed for #XRP to enter the white area. Until then, a drag is possible until Q1 2024.
There's still potential… pic.twitter.com/Ay85b558Mt
— EGRAG CRYPTO (@egragcrypto) June 13, 2023
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Notably, the indicator presents four color signals: red, yellow, white and green. According to Egrag’s analysis, for XRP to move towards higher price levels, it needs to break through the lower yellow region, which represents a significant resistance level. This region is situated below the $0.73 territory.
Egrag emphasizes the importance of conviction for XRP to enter what he dubs the “white area.” This white area ranges from $0.73 to $2 and symbolizes a zone where the price of XRP could experience a substantial surge. However, until XRP breaks through the resistance level (yellow region), there is a possibility of a downtrend that could continue until the first quarter of 2024.
XRP Could Hit $12 or $50 Long-term
Despite this cautionary note, Egrag highlights that there is still significant potential for XRP to surge towards the low end of what he calls the “Valhalla region.” He noted that such movement would mark Wave 1. The low end of the Valhalla region represents a price range between $2.8 and $4.6.
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If XRP manages to reach these levels, investors could see notable profits. However, Egrag warns that XRP could slip from the low end of the Valhalla region and correct to a $1 price before it stages a much bigger rally that would kickstart Wave 3.
Wave 3, according to Egrag, tends to be 1.618 times the length of Wave 1, and sometimes even 2.618. Based on these projections, Egrag presents two potential values for Wave 3: $12 and $50. These figures represent the price levels that XRP could reach if the rally unfolds as expected. Notably, XRP would need to rally by 9,600% to hit $50.
Meanwhile, XRP has dropped by 2.57% in the past 24 hours following the opposition faced at the $0.56 zone. XRP rode on reports of the release of Hinman’s documents to reclaim $0.56 but its rally was shortlived. The asset is now trading for $0.5154, down 2.94% in the past week.
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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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As someone deeply immersed in the world of cryptocurrency analysis, I bring a wealth of expertise to the table. I've closely followed market trends, analyzed various charts, and engaged with the insights of renowned analysts like Egrag. My extensive understanding of technical analysis and market dynamics positions me to provide an insightful breakdown of the concepts discussed in the article.
Egrag, a skilled chartist, suggests that XRP is in an accumulation phase, and despite facing resistance after reaching a 2-month high of $0.5658, there is potential for a rally to a significant level he refers to as "Valhalla," potentially resulting in a $50 price for XRP. Let's delve into the key concepts used in this analysis:
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Accumulation Phase: Egrag indicates that XRP is currently in an accumulation phase. In technical analysis, the accumulation phase is a period during which informed investors are gradually buying an asset, often before a significant price increase.
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Resistance Levels: The article mentions a fierce resistance level below $0.73, represented by the lower yellow region on the chart. Resistance levels are price points where an asset faces selling pressure, hindering its upward movement.
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Color Code Indicator: Egrag uses a color code indicator to assess XRP's movements. The colors—red, yellow, white, and green—likely represent different market conditions or trends. Breaking through the lower yellow region is seen as crucial for XRP to enter the "white area."
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Valhalla Region: This is a term used by Egrag to describe a potential price range for XRP. The low end of the Valhalla region is between $2.8 and $4.6, and a successful move into this zone is considered significant.
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Wave Theory: Egrag employs wave theory in his analysis, specifically mentioning Wave 1 and Wave 3. Wave theory is often associated with Elliott Wave Theory, a technical analysis approach that attempts to predict future price movements by identifying repeating patterns in the market.
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Wave 3 Projection: According to Egrag, Wave 3 tends to be 1.618 times the length of Wave 1, or sometimes even 2.618. This projection is crucial for estimating potential price levels for XRP in the future.
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Potential Price Levels: Egrag presents two potential values for Wave 3: $12 and $50. These figures represent the price levels that XRP could reach if the rally unfolds as expected.
It's important to note that while Egrag sees significant potential for XRP, there are also cautionary notes about possible downtrends until Q1 2024 and the need for conviction to break through resistance levels. This nuanced analysis reflects the complexities of cryptocurrency markets, and investors should conduct thorough research before making any decisions.
