Crypto analyst and XRP enthusiast Egrag Crypto recently shared his technical analysis regarding XRP’s price movements, suggesting the possibility of a double-bottom pattern.
The analyst’s latest post on X includes a chart that outlines key price levels, potential downside risks, and future price targets.
#XRP – Double Bottoms on the Horizon:
I know backlash is coming from #XRPFamily , but let's focus on the charts: #XRP has a tendency to form double bottoms across nearly all time frames. 📈
🔷The $1.63 level could be a great entry point for double bottoms. Please refer to the… pic.twitter.com/wO1YwyPiK6
— EGRAG CRYPTO (@egragcrypto) February 5, 2025
Double Bottom Formation and Key Entry Points
Egrag Crypto’s analysis indicates that XRP has historically formed double bottoms across various time frames. He identifies $1.63 as a significant level that could be an ideal entry point for those anticipating this pattern. He also referenced his private subscription-based analysis, which further details this outlook.
In technical analysis, a double bottom is a bullish reversal pattern after a downtrend. If XRP follows this pattern, a drop toward $1.63 before rebounding higher could align with historical movements.
February’s Anticipated Wave 3 and Market Delays
Egrag predicted that XRP could enter wave 3 in February, targeting $6.40 based on Fibonacci 1.618 levels. He also mentioned the possibility of XRP reaching double-digit values. However, as February progresses, he acknowledges that time is running out for this forecast, implying that a shift in expectations may be necessary.
Wave 3 in Elliott Wave Theory is typically the strongest and most extended bullish phase. While Egrag remains optimistic about this move, he is cautious given current market conditions.
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Bitcoin’s Influence and the CME Gap
Egrag also highlights Bitcoin’s role in XRP’s trajectory, suggesting that if Bitcoin experiences a market correction, it could negatively impact XRP’s price. He points out an unfilled CME gap between $77,000 and $80,000, which he believes will need to be filled before the broader market moves significantly higher.
A CME gap occurs when Bitcoin futures on the Chicago Mercantile Exchange (CME) close at one price and reopen at a different price, often leading to a retracement to “fill the gap.” If this scenario happens, it could temporarily drag the crypto market lower before resuming its upward trajectory.
Current Trading Stance and Long-Term Strategy
Egrag Crypto states that he is currently not trading XRP, neither buying nor selling at the moment. Instead, he waits for potential market corrections to reach his preferred entry point. He also reveals a limit order set at $1, indicating that he is prepared to accumulate XRP at lower prices should the market dip further.
Despite possible short-term fluctuations, Egrag remains confident in XRP’s long-term potential. He maintains that if the market does not reach $6.40 in February, investors should consider the identified support levels for future buying opportunities.
For investors following his insights, the key takeaway is to remain patient and prepared for market volatility, focusing on historical price patterns and Fibonacci levels to determine entry and exit points.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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