A well-known cryptocurrency analyst has observed technical and fundamental factors validating a potential price surge for XRP to three key levels, particularly $5, $9, and $27. “It all comes down to the relationship between the 21 EMA and the 33 SMA,” the pseudonymous analyst Egrag Crypto wrote.
However, according to the analyst, a key signal that a bearish formation is in play could be if the 21 exponential moving average (EMA) experiences a bearish cross with the 33 Simple moving average (SMA) on the weekly chart. “The top was in, and we’re heading into a bear market. Many will still believe we’re advancing, but that cross signals a major trend shift.” He asserted.
Taking a step further, the analyst outlined key historical trends validating a potential bearish outcome for the altcoin. In May 2018 and November 2021, the crosses mentioned above were observed on the XRP chart, after which an 87% and 72% drop in price value was recorded.
If the average cross movement is considered, the analyst sees the next major drop sending XRP down by 79.5% from the bearish cross point.
Conversely, the analyst highlighted other bullish possibilities, stating that the aforementioned bullish patterns displayed in XRP’s technical chart could trigger another price rally for the fourth-largest cryptocurrency by market capitalization. This anticipated bull run could send XRP way ahead of its $3.84 all-time high and instead place the asset at a never-before-seen price value of $27.
“Based on these bullish signals, I believe XRP could see another major pump—similar to the 1600% move—this time pushing us toward around $27 from the current level.” The analyst wrote.
Despite recording a 5% decline in price value over the last week, XRP has managed to sustain momentum above $2. With hourly gains slightly climbing, XRP is trading at $2.34 at press time.
