- A technical analyst warns that the ongoing corrective phase in the crypto market could drop the price of XRP to $1.40.
- However, he sees a significant rebound in the immediate aftermath, which could take prices between $8 and $27.
Altcoins like XRP continue to struggle as Bitcoin (BTC) once again touched the $103K price on Friday. Along the way, the Crypto Fear & Greed Index fell to its lowest at 22, putting the market sentiment at the “Extreme Fear” zone again. This came as pundits pushed the narrative that the bull cycle has already peaked and we may be heading to a deeper bear market.
The ongoing unease amid the US-China geopolitical tension that affected trade is not making things any better. However, the pseudonymous Egrag Crypto, a technical analyst with around 91K followers on X, is sticking to his charts.
XRP Heading to a Deeper Dive at $1.40
Egrag dispelled the notion that XRP has already peaked at $3.65 in the current cycle. He said he has a “high degree of certainty” that the market is still at the 4th stage of the Elliot Wave Theory. This means the ongoing trend is a short-term correction, which prepares the asset for a larger rally to the 5th Wave.
The Elliot Wave Theory is a technical tool that establishes a trend based on repetitive, fractal wave patterns representing collective investor psychology. It establishes trends based on five “impulse” waves, followed by three “corrective waves that move against the larger trend.
Egrag explained that the current state of the market is tricking people into premature selling, which is a typical emotional response. He sees the ongoing corrective phase bottoming at $1.40.
XRP Price Rally to $8
From there, barring any other outside factors that would suddenly shift sentiment, the asset has the potential to display a higher rebound at the end of the Elliot Wave cycle. Hence, putting the discrepancy between Waves 3 and 4 of the Elliot Wave into the equation, he predicted a $7.29 top at the 5th Wave, which aligns with his persistent $7-$8 projection for XRP this year.
The $8 target was also prevalent in the forecasts of prominent crypto analysts like the pseudonymous Dark Defender and Diamante Trading Co. President William “Will” P.
A Potential Climb to $27
From a broader perspective, Egrag reiterated that the XRP monthly price chart emulates the same conditions that led to the 2017 and 2021 rallies. During these periods, the values tended to touch the EMA (Exponential Moving Average) Ribbon before the pump. So far, the token has been touching the ribbon’s boundaries at varying levels.
If the trend continues, Egrag pointed out that the $1.40 dip could result in targets averaging $20. Meanwhile, its peak could be as high as $27.
Disclaimer: The facts presented in this article are only for informational purposes. They do not serve as financial advice or product recommendations from the author or the Blockzeit team.
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