Analyst EGRAG recently shared a projection for XRP, suggesting that it could potentially see a price increase within an identified Fibonacci channel.
EGRAG made this prediction in its latest analysis XRP price movements, taking advantage of its price action on the monthly chart. Interestingly, the basis of this prediction is the Fibonacci channel, which is useful in determining market movements.
According to EGRAG, the reason behind the bullish projection is based on XRP repeating half of its 2017 bull run. For context, XRP underperformed at the start of the 2017 bull run. However, it eventually skyrocketed to $3.31 in January 2018 after a breakout.
XRP Could Hit $27
EGRAG believes that XRP has the potential to record a massive spike again if it replicates even half of this historic surge. The analyst drew attention to XRP Monthly Fibonacci Levelsserving as potential resistance and support areas.
At the time of analysis, XRP was hovering around $0.57, with a notable level at $0.75 acting as a potential trigger for a larger upward move. EGRAG highlighted that a convincing close above the $0.75 level could pave the way for a strong rally, potentially leading to the $27 target.
If XRP breaks through the resistance of $0.75 With conviction, this could indicate the start of a more sustained uptrend. The next significant resistance would then be the 0.5 Fibonacci level. This level could act as a temporary hurdle before XRP heads towards the 0.618 level at $27.
Specifically, the 0.618 Fibonacci level is often considered a crucial point where price reversals or significant market moves can occur. EGRAG’s chart indicates that this level aligns with the $27 price target.
XRP Short Term Bearish Trend
Meanwhile, on the daily chart, XRP is currently trading below the upper and middle bands (21-day moving average) of the Bollinger Bands as it changes hands at $0.5627. This positioning suggests that the market is currently in a bearish phase.
Additionally, the Stochastic RSI indicators are showing a sharp decline, with the K line at 2.59 and the D line at 5.15, both having fallen significantly from the highs above 89 on August 24.
This sharp drop in the Stochastic RSI could indicate that XRP is currently oversold, which could lead to a short-term bounce as the market corrects. However, the downward momentum suggests that there could still be some bearish pressure in the market before a possible reversal.
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