Historical data suggests that XRP could be looking to repeat its falling wedge pattern observed from 2020 into 2021, before surging to highs of $1.84 in April 2021.

XRP has been in a downtrend for the past two years, but historical data suggests that the asset could be preparing to rebound to the $3.3 price point. Egrag, a well-known cryptocurrency analyst, recently called attention to this potential citing a falling wedge pattern observed on the asset’s 5-day chart.

Egrag compared XRP’s price action from 2018 to 2021 with the asset’s current price action. Notably, after hitting its all-time high in January 2018, Ripple faced stiff resistance that caused it to fall into a downtrend during the year. XRP declined sharply until it hit a low of $0.10 in March 2020.

This downward trend has resulted in a falling wedge pattern. A falling wedge is a bullish pattern characterized by converging trendlines sloping downward. It forms when an asset's price consolidates in a narrowing range, with lower highs and lower lows. The pattern indicates a potential trend reversal.

Expectedly, following the downtrend, XRP saw a reversal of the market trend that began in 2020 and continued into 2021, leading to a high of $1.84 in April 2021. Following the 2021 local high, the asset fell into another ongoing downtrend to this point.

Egrag spotted a similar falling wedge on the chart. The analyst predicts a similar surge, much like between 2020 and 2021. He sets a price target for the upcoming surge at $3.3, which represents a 640% increase from the current price.

Previously, another analyst also predicted a rebound to the $3 area.

XRP Pandora’s Box

However, Egrag noted that XRP will fall into an area he calls “Pandora’s Box” on its way to reaching the $3.3 price target. According to the analyst, the Pandora’s Box area lies in the crucial key price range of $0.55 to $0.67.

Egrag stressed that within this price range, the XRP community may face some challenges that will test their resistance. He predicted the following “evil” that may emerge within the Pandora’s Box territory:

  • Conflict: The XRP community may experience conflicts or disagreements due to different opinions and interests. He noted that they are currently facing this problem.

  • Disease: Some may criticize the XRP community and spread negativity, calling it a “disease.”

  • Hate: The success and wealth gained by the XRP community may cause resentment among others, who may feel jealous or excluded.

  • Death: There may be cases where extreme individuals make threats or engage in malicious behavior against members of the XRP community.

  • Madness: Critics who cannot comprehend the success of the XRP community may respond with irrational arguments.

  • Violence: Verbal abuse and hostility directed toward the XRP community could escalate into physical confrontation or injury.

  • Jealousy: Haters will display strong negative emotions towards the XRP community out of jealousy.

Despite the evils of these predictions, Egrag asked the community to remain steadfast. Meanwhile, XRP is trading at $0.4455, down 0.27% in the past 24 hours. However, the asset has maintained gains of 3.44% over the past week.