Every move a token, such as XRP, makes in the crypto market is scrutinized for potential trends and significant price actions.
A recent analysis shared on X by prominent crypto analyst EGRAG CRYPTO (@egragcrypto) has sparked interest in the community. The analyst shed light on the impending monthly close for XRP and its potential impact on the cryptocurrency’s trajectory.
He begins with Fibonacci retracement levels, specifically on the pivotal Fib 0.50 at $0.6069. According to the analysis, if November concludes below this level and is accompanied by a bearish candle formation, it could signal a concerning drift for XRP into what he calls the “yellow Triangle territory.” This move sets the stage for a bearish outlook, suggesting potential downward momentum.
On the flip side, XRP could experience bullish action if it can close the month above Fib 0.50, particularly in the range of $0.60-$0.61. XRP was trading above this level a few days ago, and a fake BlackRock XRP ETF filing sent it higher, crossing the $0.7 mark. However, when the news was revealed to be false, the digital asset dropped all the gains.
According to the analyst, closing the month above the Fib 0.50 level would mark the first monthly candle closure in an upward trend. The analyst compares this to historical candle formations, such as the December 2017 top blowoff and the Bull Run candle of April 2021, which closed in a downward trend.
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Building Foundations for the Future
EGRAG CRYPTO uses the analogy of building a tower to convey the idea that the current monthly closure lays the groundwork for XRP’s future price movements.
He suggests that, much like constructing a tower where foundations remain unseen by the public, the trajectory of XRP’s monthly price won’t revisit certain ranges. He implies a long-term vision, emphasizing the patience required to develop a strong and resilient market position.
He goes further, giving the target of $27 as a crucial level that will form a sturdy bedrock for future prices. Crossing this threshold could profoundly impact the sustainability of XRP’s upward trajectory.
The analyst also quoted Raoul Pal (@RaoulGMI), the founder of Global Macro Investor, writing, “Better not to fuck up this generational trade.”