Renowned crypto analyst Egrag Crypto has taken to X to reveal another price trend pattern he recently observed on the XRP chart.
Egrag’s latest analysis was coined out of XRP’s weekly Volume Profile Visible Range (VPVR) chart, from which he highlighted two significant markers: The Value Area High (VAH) and the Low-Value Area (VAL).
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Describing what the VAH and VAL appeared to indicate, the crypto chartist noted, “Value Area High (VAH) represents the highest price within the 70% total value area, while the Low-Value Area (VAL) marks the lowest price within this range.”
#XRP Weekly VPVR ( Volume Profile Visible Range):
— EGRAG CRYPTO (@egragcrypto) October 5, 2023
Value Area High (VAH) represents the highest price within the 70% total value area, while the Low-Value Area (VAL) marks the lowest price within this range.
To me, it's crystal clear: #XRP has broken out of a multi-month trend… https://t.co/7qtxPNoVuu pic.twitter.com/7g16Vkci8f
Notably, based on the shared charts, VAH could be traced around the $0.55 price region, implying a crucial resistance level while the VAL seemed to have formed between the $0.11 and $0.25 price marks.
Multi-Month Trendline – Implications On Retesting
According to Egrag, XRP has succeeded in breaking free from a multi-month trendline. He also noted that the digital asset had successfully revisited the breakout, which he believes would tend towards painting a bullish picture for XRP in the future by setting the stage for a potential price upswing.
Delving further into his analysis, Egrag noted that XRP must consolidate at a position above the VAH, which is currently resting above the trendline described above. Egrad added that concluding weekly candles above the $1 price level would not only pose a structural landmark for XRP but could also tend to become a psychological barrier.
Worthy of mention is the fact that the multi-month downward trendline came to light after XRP dropped from its $1.96 price high attained in April 2021. The decline persisted for over a year and finally broke through on July 13 following the widely celebrated summary judgment that partly cleared Ripple of the charges against it by the United States Securities and Exchange Commission (SEC).
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Read Also: Top Chartist Says His $27 XRP Price Prediction Is Inevitable, Indicates Likely Timeline On Chart
Egrag Projects Possible XRP Price Targets
Hinting at what could be XRP’s potential price targets, Egrag seemed to hammer on a yellow trendline that appeared on one of his shared charts, noting that it could pose a powerful resistance to XRP’s next bull run.
The analyst labeled the trendline as the next macro resistance point for XRP, adding that the longer XRP takes to establish a reasonable basis for its rally, the higher its price when the bull run eventually sets in.
Egrag noted that if the rally plays out as analyzed, its next macro resistance level could be at the $3 price mark. However, should the bull take longer than expected, then it implies that it would need to break above a higher $4 price resistance level.
Notably, XRP attaining possible price levels at $3 and $4.5 would imply remarkable increments of about 476.9% and 765.4%, respectively, from its $0.52 current price at the time of writing.
Egrag wrapped up his analysis by encouraging the XRP community members to remain patient, noting that if XRP finally succeeds in breaking above the $1 price level, it would be the last time the asset would ever trade below $1 on a monthly timeframe.
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