- A technical analyst reveals that a bullish chart pattern is helping XRP price build momentum toward a $40 top.
Ripple has been accelerating its efforts to integrate XRP Ledger (XRPL) in traditional finance (TradFi) institutions, with its sights zeroed in on eventually capturing 14% of SWIFT’s volume in global payment settlement. At the same time, the US continues its pivot toward becoming a digital assets hub with favorable regulations and the influx of exchange-traded products (ETFs) based on cryptocurrencies.
Despite these, the XRP price remained comfortably seated at between $2 and $2.32 during the past seven days. Now, some crypto community members are wondering if there’s some sort of market manipulation going on.
XRP Sits Out the Calm Before the Storm
Others who are no longer new to the game are just shrugging things off, knowing that the strong fundamentals of XRP, particularly its utility-focused nature, will eventually weather the tension.
Amid XRP’s continuous failure to match its all-time high (ATH) of $3.84 seven years ago, the pseudonymous Egrag Crypto, a popular technical analyst, has kept his conviction over the building momentum of the token. He believes the chart patterns suggest a repeat of its 2017 cycle that could catapult prices exponentially beyond the prevailing record.
XRP Price Road to $40
According to Egrag, a W formation has been in the works in the monthly range after XRP underwent a correction from its January 2018 ATH to a $0.10 low in March 2020. The latter served as the first base of the pattern’s double-bottom structure.
In 2021, XRP attempted another shot toward a new ATH but fell short near the $2 mark before dipping at the $0.29 line. These plotted the middle point and the second bottom of the W pattern, respectively.
Fast-forward to the bullish charge of the token starting in November last year, momentum was again halted at $3.40 in January this year. From there, the crypto asset has maintained a consolidation phase in the long-term trend.
The analyst indicates that the recent price actions of XRP are retesting a potential breakout from the W pattern. In the event that it decisively breaches the resistance of the trend, Egrag’s conservative estimate leads to a $15 top. Meanwhile, his average forecast is $22, and his optimistic view bumps the price to $40.
At this rate, the numbers translate to over 290%, 472%, and 941% up from XRP’s existing ATH. These are also between 591% and 1,743% above the token’s $2.17 average in the last 24 hours.
While the analyst is confident in his technical data, he still advised the investing public to tread the market cautiously. He recommended that they take their initial capital at lower targets at around $6 to $7 to secure their profits, in case circumstances such as an ensuing high selling pressure from concentrated profit-taking would negate his overbullish $15 to $40 per token projection.
