In a recent social media post, a well-known crypto analyst,EGRAG CRYPTO shared a bullish prediction for XRP, suggesting that the price could soar to $27. This forecast is based on a pattern observed in the XRP market, reminiscent of a historical event from 2017.
The analyst highlighted a significant development in the XRP charts, where the 20 Simple Moving Average (SMA) crossed above the 50 SMA. This crossover, which occurred around 350 days ago on the weekly candlestick timeframe, has only been witnessed twice in XRP's history, leading to distinct outcomes each time.
Drawing parallels between the current market conditions and those of 2017, the analyst pointed out similarities in the movements of the 20 SMA and 50 SMA. This comparison has sparked speculation about whether XRP is poised to follow a familiar trajectory or chart a new course in the coming days.
Historical Crosses and Price Movements
The first instance of the 20 SMA crossing above the 50 SMA occurred in 2017, triggering a period of consolidation for 49 weekly bars before XRP experienced a rapid and aggressive price surge. This surge ultimately propelled XRP to its all-time high of $3.84, characterized by what the analyst referred to as a "rocket ship-style pump."
In 2021, a similar crossover took place, leading to a shorter consolidation period of 32 bars followed by a less substantial price surge compared to the 2017 cycle. The current cycle, dubbed "Cycle C" by the analyst, appears to align more closely with the characteristics of the 2017 cycle than the 2021 cycle, hinting at the potential for a breakout that could exceed previous surges.
Future Outlook for XRP Price
Despite facing challenges in recent market movements, XRP has shown resilience by maintaining support above $0.6. While the price briefly surpassed $0.73 earlier in March, subsequent fluctuations have led to the formation of lower highs and lower lows.
Looking ahead, experts anticipate a potential shift in momentum towards a strong bullish trend if XRP bulls can sustain support above the $0.6 price level. This optimistic outlook is supported by technical analysis pointing to a favorable setup for XRP to potentially break out and target the $27 price mark, representing a significant surge from current levels.
As the cryptocurrency market continues to evolve and adapt to changing dynamics, analysts and traders alike are closely monitoring XRP's price movements to gauge the likelihood of a substantial breakout in the near future. The convergence of historical patterns, technical indicators, and market sentiment all contribute to the ongoing speculation surrounding XRP's potential for a significant price surge in the coming days.