- A technical analyst warns that the price of XRP could undergo a correction, possibly dipping to $2.35-$2.40.
- However, he believes it’s a healthy correction that could catalyze the token’s climb to new all-time highs.
The price of XRP has continually failed to break out from the $3 psychological resistance in the last seven days. Meanwhile, $2.70 has remained its strong support. However, the pseudonymous technical analyst Egrag Crypto sees a deeper pullback before the token’s price reaches new heights in the next bull run.
A Flush Out Before a Major Rally
The widely followed crypto analyst on the X social media platform believes XRP is due for “one more flush out” before a significant upward movement. He said the token has a 70% chance to dip before a major uptrend, which he opined is a healthy correction from a “structural point of view.”
On the other hand, Egrag claimed that the asset has 30% odds of soaring to higher prices, but it could also mean sharp corrections afterward. Hence, he noted that the first scenario is a more favorable outcome.
FVG to Fill the XRP Price Gap
Egrag based his analysis on the Fair Value Gap (FVG) analysis. The metric refers to a price gap on a candlestick chart due to market imbalances. It forms when prices move too quickly in one direction, which leaves a void where little or no trading activity has occurred in between candlewicks. Analysts state that the market usually revisits the gap to “fill” the void.
The technical analyst explained that the FVG on the three-day chart indicates prices will likely revert to $2.35-$2.40. He highlighted that the three-day chart serves as an ideal pattern because it considers the long-term trends without ignoring the short-term price actions.
Additionally, Egrag pointed out that the market typically takes time to plug such a gap, and the last time it happened took 129 days to complete. Applying such an assumption puts November 15 as the probable time for the trend to finish, but the analyst reminded that it’s a rough estimate mainly based on the three-day FVG range.
The analyst emphasized that XRP’s bearish trajectory may end at $2.65 if the key support holds. But then again, a steeper slide to $2.35-$2.40 is preferable because it can potentially build stronger momentum in a bullish phase.
In the comments section, Egrag told one of his followers that it’s better to dump now than in the middle of October because the market could be due to a “sell the news” event by that time following the anticipated deadline of the US Securities and Exchange Commission’s (SEC) decision on the pending spot XRP exchange-traded funds (ETFs).
Where Will the Next Bull Run Take the Price of XRP?
Despite the looming drop in the price of XRP, Egrag expressed his conviction that the long-term trends all point to the token’s charge beyond $4. In his previous analysis, he identified $9.60 or $33 as potential targets if the asset emulates its actions during the 2017 and 2021 bull cycles.
Check out the article covering the mentioned targets: XRP Historical Price Actions Suggest $9.60 Or $33 Top This Cycle
Disclaimer: The facts compiled within this article are only for informational purposes. They do not serve as financial advice or product recommendations from the author or the Blockzeit team. The market could immediately head in the opposite direction without warning if unforeseen events take control over the broader narrative. Therefore, readers should not base their trades or investment decisions solely on this limited data.
