Crypto analyst EGRAG is bullish on XRP potential for a $2 rally as it approaches a multi-year channel breakout.
In recent analysis, EGRAG highlighted that the $2 price level holds substantial historical importance. In the cryptocurrency market, past price points are crucial reference markers and understanding this, he points out two critical historical events in this case.
XRP Relevance in the $2 Milestone
In January 2018, XRP peaked at $2, a notable moment despite reaching $3.31. This historical context highlights its psychological significance for traders. Following such, in April 2021, the asset hit $1.96, marking another peak. This suggests the potential for it to revisit these levels.
EGRAG stresses the value of a 4-month timeframe for analyzing the asset price. “Longer timeframes provide a more accurate, dependable view of its trajectory” he said.
The Descending Channel
EGRAG illustrates his analysis with a 4-month chart, showcasing two descending channels. The first started in 2018 after XRP’s ATH of $3.31. Subsequent declines led to its formation.
In early 2021, XRP surged to $1.96, breaking free from the 2018 channel then a decline forming the second channel.
Based on historical trends, EGRAG predicts an imminent significant rally similar to that of April 2021, potentially driving XRP to $2, a remarkable 277% increase from its current $0.53 price
It’s worth noting that EGRAG’s analysis builds upon a previous post where he highlighted two trading zones for XRP: Zone A and Zone B.
In this analysis, EGRAG noted that the asset traded in Zone A from 2013 to 2017 before moving to Zone B, which featured a higher price range. He then suggests that XRP could break out of Zone B, entering a new zone with higher price ranges.
Notably, XRP’s current position at $0.53 follows a recent opposition to its latest upsurge.
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