XRP, the cryptocurrency of blockchain payments firm Ripple, has been making headlines recently. The digital asset is once again the subject of optimistic predictions from analysts and traders, who are convinced it is poised to make a comeback soon.
Also Read: Ripple News: John Deaton Calls XRP a Cockroach, that Cannot Be Killed
Egrag Crypto, a top pseudonymous crypto analyst, recently forecasted that XRP would reclaim the much-coveted $1 threshold, following two W patterns formed by the asset in its price movements.
Road To $1
The W pattern is a commonly observed technical analysis pattern that may indicate a possible trend reversal in the price of an asset. The W pattern is a potentially bullish signal, suggesting that the underlying asset has established a level of support and could be poised to reverse its previous downtrend.
Egrag highlighted several W patterns to drive home his point. In a follow-up analysis of his previous price forecast from April 1, he pointed out that XRP’s price movements from as far back as May 2022 have successfully formed two distinct W patterns, which he labeled patterns A and B.
He mentioned that forming the A and B patterns is a precursor to forming a bigger W pattern that would result in an XRP surge to $0.85 if it plays out. According to Egrag’s chart, should this W pattern materialize, it would lead to a recovery of $0.85 this month on the non-log scale.
In addition, he noted that an enduring run would lead to an XRP surge to the coveted $1 price target on the logarithmic scale. Data from his charts implies that this could occur in April. The last time XRP was worth $1 was in December 2021.
XRP’s Current Price Movement
The long wick on XRP’s $0.51 April 1st candlestick shows that the bears are aggressively defending the key barrier of $0.56. The token formed an inside-day candlestick pattern on April 2, indicating uncertainty among the bulls and the bears.
If the price slips below $0.52, XRP may retest the breakout level of $0.49. This is an important level to watch because a break below it could extend the correction to the 20-day EMA.
Alternatively, the price could continue to climb from here and finally break out of the $0.56 to $0.59 support range. Assuming that scenario plays out, the asset’s value could increase to $0.65 or even $0.80. At press time, XRP is worth $0.514.
Related: Ripple Vs SEC: Attorney John E. Deaton Predicts Timeline For Lawsuit Outcome – Coinpedia Fintech News
