XRP News Today: XRP Faces 1,500% Crash Risk, Analyst Predicts

Market analyst EGRAG has forecasted a significant decline in the price of XRP, predicting a potential "crash" that could see the cryptocurrency drop by 1,500%. This dramatic prediction is based on XRP's historical performance, which has shown a pattern of bull flags since 2015. According to EGRAG, this pattern suggests that the largest rally for XRP is yet to come, but it could also lead to a substantial correction.

EGRAG has identified a support level with massive liquidity, which could act as a buying opportunity if XRP drops to this level. The analyst has expressed plans to buy XRP with all his cash if the price reaches this support level, indicating a strong belief in the cryptocurrency's long-term potential despite the short-term volatility.

XRP has spent the last four months hovering near the lower end of the $2 range, with little sign of momentum in either direction. This lack of movement has left many investors feeling uneasy, unsure whether the token is aiming for a breakout or bracing for another lull. However, while short-term traders focus on daily fluctuations, EGRAG looks at the bigger picture, ignoring what he calls “short-term noise.”

EGRAG recently shared his latest thoughts on XRP’s price action, pointing to the monthly chart as the clearest way to cut through the day-to-day noise. Interestingly, the analyst leveraged a unique approach in the form of a reverse chart. For context, on this chart, what appears to be a price drop is actually a rise, and when the analyst mentions XRP “falling” below the 21 Exponential Moving Average (EMA), he is actually describing a push above the pivotal technical level.

Citing XRP’s historical performance, EGRAG broke its price behavior into three major cycles, each featuring an initial price spike, a retracement, and then a subsequent upsurge. Specifically, in Cycle 1 from 2017 to 2018, XRP crossed above the 21 EMA and surged roughly 5,500%. After that big move, it pulled back to touch the EMA before climbing again, this time by 2,500%. While he describes these moves as “drops” due to his reverse chart, they were actually major upward moves in price.

Meanwhile, Cycle 2, which occurred from 2020 to 2021, followed a similar pattern but with smaller gains. XRP broke above the 21 EMA and rallied 150%, pulled back again, and then climbed another 500%. EGRAG sees these repeated phases as a pattern that XRP could follow once more in the current cycle.

Now in Cycle 3, XRP has already crossed above the 21 EMA again. So far, EGRAG estimates the ongoing move represents a 430% rise. Right now, he believes XRP is in the middle of a retracement, which should bring the price back in line with the 21 EMA. If the price stays above $2, he expects the EMA will slope downward to meet XRP soon.

According to him, what happens next is extremely important. Based on past trends, XRP could be in for another big leg up. If the current cycle plays out like the first, XRP might reach as high as $46. If it follows the second cycle instead, a move to $12 is more likely. Taking the average of these two scenarios, EGRAG lands on a projected gain of 1,500%. That would put XRP at a target of around $30. However, he personally sees $27 as a more realistic level.

The market analyst has persistently projected this $27 price. Most recently, he suggested XRP could hit the $27 mark in 60 days, citing its 2017 run. Currently, XRP changes hands at $2.29, down 2% in the past 24 hours. To reach the $27 price from this level, XRP must rise 1,079%.

The forecast of a 1,500% crash in XRP's price is a stark reminder of the inherent volatility and risk associated with cryptocurrency investments. While some analysts and investors may view this as an opportunity to accumulate more XRP at a lower price, others may see it as a warning to exercise caution and diversify their portfolios. The prediction also highlights the importance of conducting thorough research and analysis before making investment decisions in the cryptocurrency market.

EGRAG's analysis of XRP's historical performance and the identification of key support levels provide valuable insights into the cryptocurrency's potential price movements. However, it is essential to remember that market conditions can change rapidly, and predictions are not guaranteed to materialize. Investors should approach such forecasts with a critical mindset and consider multiple factors before making investment decisions. The cryptocurrency market is known for its unpredictability, and even the most well-researched predictions can be subject to unexpected events and market dynamics.