- Two popular technical analysts indicate that significant momentum is building in the price trajectory of XRP.
- One suggests that the $1.90 dip is setting up the asset for a bounce back to $2.50.
- The other explains why the asset must close above $3.40 in the long-term chart.
The countdown to 2026 is zeroing in, but the crypto community exhibits a bleak outlook for XRP’s chance of ever staging a significant rebound in the anticipated Santa Claus rally. However, two popular technical analysts have drawn a silver lining amid the FUD (fear, doubt, uncertainty).
XRP Price Reclaiming $3.40
According to the pseudonymous Egrag Crypto, a technical analyst with a near-hundred-thousand following on social media X, applying logarithmic linear regression to the long-term, monthly chart of XRP suggests a possible mean reversion to $3.40. This means he believes the asset could recapture its historical average within that territory in the near term.
The analyst explained that XRP must reclaim the level it lost in July this year. A close within that area on the monthly chart means it’s back into the macro bullish territory. On the other hand, he warned that a retest and rejection of that range will lead to “one of the strongest bearish TA signals” on the chart.
Egrag forecasted that XRP’s further rallies to $10 or even $27 in the long term hinge on its monthly chart closing above $3.40.
The logarithmic linear regression channel plots parallel lines around a central trendline to predict where momentum peaks and, eventually, reverses or exhausts in the long term. However, some commenters to Egrag’s post argued that such a tool only works with uninterrupted historical data. Therefore, it no longer applies to XRP, as it broke correlation when the 2020 Securities and Exchange Commission (SEC) lawsuit reset its price discovery.
A Rebound to $2.50
Ali Martinez, another popular technical analyst on X, has also thrown in his thoughts as XRP again dipped below $2 this Monday. Despite the Crypto Fear & Greed Index showing “Extreme Fear” in investor sentiment, with the scale hitting 16 out of 100, he claimed now is the best time to buy the asset.
The analyst grounded his observations in the patterns he identified in the TD Sequential tool. He believes a close above $1.90 positions the token for a $2.50 bounce.
TD Sequential indicates strong price resistance and support within a trend. These potential price exhaustion signals the best opportunities to buy or sell an asset.
Final Thoughts
The analysts featured here purely anchored their projections on XRP’s technical charts, rather than on fundamentals such as Ripple’s recent advances in boosting XRP Ledger (XRPL) adoption, regulatory progress, and other macroeconomic factors. Hence, unforeseen factors impacting market sentiment could easily negate their targets. Nonetheless, their charts present a compelling case based solely on time-tested principles of financial analysis.
Disclaimer: The analysis and commentary featured in this article are only for informational purposes. They do not constitute financial advice or a product recommendation from the author or the Blockzeit team.
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