EGRAG CRYPTO, a well-known analyst, has introduced a new analytical framework that aims to predict 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, utilizing methodologies from price movements in 2017.
Despite the ongoing uncertainty surrounding the Ripple vs. SEC lawsuit, the native cryptocurrency XRP has been hovering around the $0.52 level with a market cap of $29 billion. Despite the selling pressure on XRP, its daily trading volumes have surged by an impressive 103%, surpassing $2.2 billion, as reported by Crypto News Flash.
However, despite this selling pressure, investors are still taking bold bets on XRP. EGRAG CRYPTO, a prominent analyst, recently revealed an analytical approach to determine 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 breaks down past price surges into different periods, particularly those seen in 2017 and 2021. Notably, the analyst divides the peak values of these periods in half to determine 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.
By applying this approach to XRP’s price movements in 2017, which consisted of three significant waves, EGRAG CRYPTO identifies three potential price targets: $1.96, $15, and $66. These targets are determined by halving the peak values achieved during each segmented surge within the 2017 cycle.
Using 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.
In terms of a long-term holding strategy for XRP, the analysis acknowledges the possibility of price volatility in the coming days. If XRP reaches the $2.8-$3.5 range, significant profit-taking could occur, potentially resulting in a retracement. However, the analyst emphasizes the importance of maintaining a long-term perspective and advises against selling based on short-term fluctuations.
Additionally, 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 these price targets for XRP may appear promising in the long term, traders are currently focused on pushing XRP above $1. Analysts are hopeful that XRP can reach this price by the end of the year, along with a broader market rally. As reported by Crypto News Flash, XRP has seen significant whale activity as soon as the U.S. House passed the FIT21 crypto bill on Wednesday.