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- EGRAG CRYPTO, a notable analyst, has introduced an analytical framework to forecast potential price targets for XRP, based on historical price trends and market liquidity.
- By dividing previous peak values in half, the analysis suggests potential price targets of $1.96, $15, and $66, applying methodologies from 2017 price movements.
Amid the ongoing uncertainty in the Ripple vs. SEC lawsuit, native cryptocurrency XRP has been flirting around $0.52 levels with a market cap of $29 billion. While the selling pressure hovers over XRP, its daily trading volumes have skyrocketed by a staggering 103% shooting past $2.2 billion, as reported by Crypto News Flash.
However, the current selling pressure hasn’t stopped investors from taking bold bets on XRP.
EGRAG CRYPTO (@egrahcrypto), a prominent analyst, recently unveiled an analytical approach outlining potential price targets for XRP. This strategy primarily relies on historical price trends and overall market liquidity, disregarding factors such as utility, DeFi, and Automated Market Makers (AMMs).
EGRAG CRYPTO’s methodology dissects past price surges into distinct periods, particularly those witnessed in 2017 and 2021. Notably, he divides the peak values of these periods in half, aiming to ascertain potential price targets for XRP in the current market cycle while maintaining a cautious outlook.
The analysis assumes that current demand levels will remain consistent and does not take into account potential impacts from factors such as utility, integration into decentralized finance (DeFi), or other emerging trends within the XRP ecosystem.
Applying this approach to XRP’s price movements in 2017, characterized by three significant waves, EGRAG CRYPTO identifies three potential price targets: $1.96, $15, and $66. These targets are determined by halving the peak values attained during each segmented surge within the 2017 cycle.
Applying a similar methodology, EGRAG CRYPTO examines the XRP price surges observed in 2021. By halving the peak values of these surges, a potential target of $2.8 is identified.
Long-Term Holding Strategy for XRP
The analysis recognizes the potential for price volatility in the coming days. EGRAG CRYPTO indicates that if XRP reaches the $2.8-$3.5 range, it could prompt substantial profit-taking, potentially resulting in a retracement. Nonetheless, the analyst underscores the importance of maintaining a long-term outlook and advises against selling based on short-term fluctuations.
Furthermore, the analysis draws a comparison between holding XRP and adopting a long-term investment approach with prominent technology stocks (FANGMAN). EGRAG CRYPTO suggests that holding XRP since its inception may yield better returns compared to various short-term trading strategies.
Although theoretically, these price targets for XRP look good enough in the longer term, traders are first eyeing to take XRP above $1. Analysts are hopeful that XRP can attain this price by the year-end along with the broader market rally. As reported by Crypto News Flash, XRP has seen huge whale activity soon as the U.S. House passed the FIT21 crypto bill on Wednesday.
